What are the accounting consequences of revaluing property, plant and equipment on adopting accounting standards for private enterprises?
An enterprise may elect to revalue property, plant and equipment on adoption of accounting standards for private enterprises. This is a one-time election and can be made on an individual item basis. Revaluing an asset to a higher amount will result in increased depreciation if the asset is depreciable and will increase the likelihood of a future impairment.
Related Questions
- What are the implications of adopting accounting standards for private enterprises for an enterprise that previously followed AcG-18, Investment Companies?
- Can my previous accounting policies be ‘grandfathered’ in adopting the standards for private enterprises?
- Who can use accounting standards for private enterprises?
