Asset Revaluation - based on WDV (NBV)
My client has the following Revaluation scenario/requirements (on an Asset base of approx 750 000 assets);
- Using Revaluation at Asset Category level
- Revaluations will be done annually
- Revaluation based on WDV (Written Down Value
(NBV)) - Movement of WDV to post to Reval Reserve
For example, at Asset Category level the Totals are;
Cost = 5 000 000
Acc Depn = 4 400 000
Asset Category WDV = 600 000
Scenario 1 (Revaluation of WDV upwards)
New Asset Category WDV = 800 000
Apply Reval = 33% (200/600)
Reval Reserve impact = 200 000
Scenario 2
New Asset Category WDV = 500 000
Apply Reval = -16.16% (-100/600)
Reval Reserve impact = -100 000
In both scenarios the change in Revaluation Reserve directly
reflects the change in WDV for the Asset Category and the impact on an asset by
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