Qs regarding Fixed Assets Revaluation and Depreciation

Hi All,

I have a Q regarding Fixed Assets revaluation and depreciation.

For the year starting 1/7/13, some assets were revalued from at cost to fair value, the revaluation (AR) journal removed capital and depreciation costs and replaced the capital costs, leaving the accumulated depreciation at $0.

The new capital fair value figures were to be depreciated as at the 1/7/13 onwards at the new values at a rate of 20% a year.

The journal process did not consider the actual parent capital account on the asset and removed costs to and from 1.1618 (Cost Account) regardless of the parent capital account which could have been 1.1618 or 1.1618.80. This created duplicated accounts on the assets, which ignored the new values and continued to depreciate from the inception cost.