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What is the meaning for an asset is capital appreciation while we investing?
Answers (6)
Thread Starter
Kamal KumarWhat is capital appreciation?
Say you purchase land for 1,00,000. The value increases to 1,20,000 This is capital appreication Basically increase in the value of your investments.
CA Suraj Lakhotia Admin
Say you purchase land for 1,00,000. The value increases to 1,20,000 This is capital appreication Basically increase in the value of your investments.
But in this no cash inflow and we only made revaluation entry? I could not understand because if we invest in assets then there will be return on those assets in which the cash is inflow. So, can you give clarity?
Thread Starter
Kamal KumarBut in this no cash inflow and we only made revaluation entry? I could not understand because if we invest in assets then there will be return on those assets in which the cash is inflow. So, can you give clarity?
appreciation means increase in value. It may be realised or unrealised. For PPE you follow guidance given under AS10 /Ind AS 16 for revaluation.
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