revaluation

Question 1

how do we revalue using gross replacement value method

Answer 1

proportionally adjust cost to new gross value o date of purchase
and
proportionately adjust accumulating depreciation to reflect depreciation of new gross value

Question 2

gross replacement revaluation basic journal (increase in grv)

Answer 2

DR COST
(new grv less old grv )
CR accumulated depreciation
(new less old )
CR revaluation surplus
(fair value (nrv) less carrying amount of old grv)

Question 3

revaluation surplus (GRV)

Answer 3

fair value @ NRV
less
carrying amount (old amount)

Question 4

cost (GRV)

Answer 4

NEW GRV
less
OLD GRV

Question 5

Accumulated depreciation (GRV)

Answer 5

GRV x (total depreciation/ total useful life)

Question 6

revaluation income (GRV)

Answer 6

actual carrying amount
less historical carrying amount

Question 7

revaluation surplus (GRV)

Answer 7

historical carrying amount
less Fair value

Question 8

components of revaluation that trigger deferred tax

Answer 8

-revaluation surplus (oci)
-revaluation expense (p/l)
-temporary difference in depreciation

Question 9

GRV revaluation at the end

Question 10

GRV revaluation at the beginning