Accumulated depreciation at revaluation

Learning objectives

• Calculate the gross carrying amount and the accumulated depreciation after revaluation under each of the two methods.L3, L4
• Record the elimination of accumulated depreciation on a revaluation.L3
• Calculate the restatement of the gross carrying amount consistent with the revaluation of the carrying amount.L4
• Record the elimination of accumulated depreciation against the gross carrying amount before revaluation.L3

Normative references

• IAS 16 §35On revaluation, the carrying amount is adjusted to the revalued amount, and then either (a) the gross carrying amount is adjusted consistently with the revaluation (for example by reference to observable market data, or in proportion to the change in carrying amount) and accumulated depreciation is adjusted to equal the difference between the gross carrying amount and the carrying amount after accumulated impairment losses, or (b) accumulated depreciation is eliminated against the gross carrying amount. The adjustment to accumulated depreciation forms part of the increase or decrease in carrying amount dealt with under paras. 39 and 40.

Original summaries of the paragraphs (reference register), never a quotation of the standard.

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