AS 28

Depreciation is 1cr and the revised depreciation is 1.7cr. Enhanced depreciation is 1.7 - 1 = 0.7 cr for 1year. For 2 years it is 1.4 cr

Likith kumar Duganapalli

Moderator

30-Jul-24 14:38

Assume we have a balance of revaluation surplus of 0.70 because we have done upward revaluation of asset, Impariment is check every year so Now next year when checked for impairment asset value in market was reduced by 0.91 Now 0.91 shd be reduced from asset value to match the market value and accout for impairment, correspondingly we can use revaluation surplus of 0.70 and remaining we need to debit to p&l, Machinery a/c dr 0.91 To revaluation surplus a/c 0.70 To p&l a/c 0.21

R Yashwanth Kumar

CA Final

★ 87K+

24-Jul-24 08:22

Got it... Can u also explain the calculation of enhanced depreciation?

Thread Starter

Sagar Kathuria

CA Final

★ 3K+

24-Jul-24 09:10