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Can a fully depreciated assest be revalued ?

Can a fully depreciated assest be revalued ?

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Answer #1

It depends on the policy chosen by the firm.

1. If recording at cost is followed by company - no revaluation will be done and hence assets will be shown as cost - accumulated depreciation = $0. When the asset is disposed , any sum received will be recorded as gain on sale of asset.

2. If revaluation policy is possible then asset can be revalued , and accordingly new amount will be shown as asset. And also same amount will be shown as revaluation reserve.

However this option is only available in IFRS. If US GAAP is followed then there can not be revaluation because of cost and matching principle.

Feel free to ask any queries..

Also plz upvote it means a lot.. thank you

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