.Property plant and equipment comprises $11,000,000 (written down value)
reevaluated amount （13,200,000） Property plant and equipment is currently depreciated on a straight line basis over a ten year useful life and there is no residual value. They are currently half way through their useful life and it is not anticipated that either the useful life or the residual value of the assets would change.

.Property plant and equipment comprises $11,000,000 (written down value)
revaluated amount （13,200,000） Property plant and equipment is currently depreciated on a straight line basis over a ten year useful life and there is no residual value. They are currently half way through their useful life and it is not anticipated that either the useful life or the residual value of the assets would change.

so what is your question? When assets are revalued the value is adjusted in the asset account, the rate of depreciation is adjusted and equity increased.

so what is your question? When assets are revalued the value is adjusted in the asset account, the rate of depreciation is adjusted and equity increased.
sorry here is the detail

Revaluation reserve is $2,200,000 computed as follows
Revalued amount $11,000,000*(100%+20%) =13,200,000
Carrying amount $11,000,000
Revaluation amount $2,200,000

Current depreciation amount $13,200,000/5=$2,640,000(straight line &no residual value)
Depreciation on cost $22,000,000/10=$2,200,000
Excess depreciation $440,000


I'd like to ask how is journal recorded and what is the effect to f/s

sorry here is the detail

Revaluation reserve is $2,200,000 computed as follows
Revalued amount $11,000,000*(100%+20%) =13,200,000
Carrying amount $11,000,000
Revaluation amount $2,200,000

Current depreciation amount $13,200,000/5=$2,640,000(straight line &no residual value)
Depreciation on cost $22,000,000/10=$2,200,000
Excess depreciation $440,000


i'd like to ask how is journal recorded and what is the effect to f/s

the revaluation revserve is credited and the asset account debited. As you are dealing with written down value the asset account is debited with $4400000

the accumulated depreciation is adjusted to reflect the remainimg useful life i.e. 2640000/2 =13200000. The existing accumulated depreciation has increased. $2200000 meaning that the reserve will be debited with $2200000

What does f/s mean? The impact on the annual profit is $440000 There will be abnormal item of $2200000 arising from revaluation of assets