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In case the depreciable assets revalued,the provision for depreciation is based on- a)The revalued amount over the estimate of the remaining useful life of such assets b)Market value of the assets c)Depreciated value of the assets d)Historical Cost of assets Correct answer is option 'A'.Can you explain this answer?
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In case the depreciable assets revalued,the provision for depreciation...
Explanation:
When the depreciable assets are revalued, the provision for depreciation is based on the revalued amount over the estimate of the remaining useful life of such assets. This means that the depreciation provision is based on the increase in the value of the assets after revaluation, and the estimated remaining useful life of the assets.
There are several reasons why a company may choose to revalue its assets. For example, if the market value of the assets has increased, or if the company has invested in improvements that have increased the value of the assets, then a revaluation may be necessary. In such cases, the company needs to adjust the value of the assets on its balance sheet to reflect their true value.
To calculate the provision for depreciation after revaluation, the company needs to take into account the new, revalued amount of the assets, as well as the estimated remaining useful life of the assets. This is because the depreciation charge is based on the cost of the asset, less its estimated residual value, divided by the estimated useful life of the asset. Therefore, the provision for depreciation must be adjusted to reflect the new, higher value of the asset, and the remaining useful life of the asset.
In summary, the provision for depreciation is based on the revalued amount over the estimate of the remaining useful life of the assets. This ensures that the depreciation charge accurately reflects the value and useful life of the assets, and helps the company to maintain accurate financial statements.
When the depreciable assets are revalued, the provision for depreciation is based on the revalued amount over the estimate of the remaining useful life of such assets. This means that the depreciation provision is based on the increase in the value of the assets after revaluation, and the estimated remaining useful life of the assets.
There are several reasons why a company may choose to revalue its assets. For example, if the market value of the assets has increased, or if the company has invested in improvements that have increased the value of the assets, then a revaluation may be necessary. In such cases, the company needs to adjust the value of the assets on its balance sheet to reflect their true value.
To calculate the provision for depreciation after revaluation, the company needs to take into account the new, revalued amount of the assets, as well as the estimated remaining useful life of the assets. This is because the depreciation charge is based on the cost of the asset, less its estimated residual value, divided by the estimated useful life of the asset. Therefore, the provision for depreciation must be adjusted to reflect the new, higher value of the asset, and the remaining useful life of the asset.
In summary, the provision for depreciation is based on the revalued amount over the estimate of the remaining useful life of the assets. This ensures that the depreciation charge accurately reflects the value and useful life of the assets, and helps the company to maintain accurate financial statements.
Community Answer
In case the depreciable assets revalued,the provision for depreciation...
Because revalued value is market value and in consideration with estimated life percentage of depreciation isto be calculated. it's quite tricky against read concepts
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In case the depreciable assets revalued,the provision for depreciation is based on- a)The revalued amount over the estimate of the remaining useful life of such assets b)Market value of the assets c)Depreciated value of the assets d)Historical Cost of assets Correct answer is option 'A'.Can you explain this answer?
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In case the depreciable assets revalued,the provision for depreciation is based on- a)The revalued amount over the estimate of the remaining useful life of such assets b)Market value of the assets c)Depreciated value of the assets d)Historical Cost of assets Correct answer is option 'A'.Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about In case the depreciable assets revalued,the provision for depreciation is based on- a)The revalued amount over the estimate of the remaining useful life of such assets b)Market value of the assets c)Depreciated value of the assets d)Historical Cost of assets Correct answer is option 'A'.Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In case the depreciable assets revalued,the provision for depreciation is based on- a)The revalued amount over the estimate of the remaining useful life of such assets b)Market value of the assets c)Depreciated value of the assets d)Historical Cost of assets Correct answer is option 'A'.Can you explain this answer?.
In case the depreciable assets revalued,the provision for depreciation is based on- a)The revalued amount over the estimate of the remaining useful life of such assets b)Market value of the assets c)Depreciated value of the assets d)Historical Cost of assets Correct answer is option 'A'.Can you explain this answer? for CA Foundation 2024 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about In case the depreciable assets revalued,the provision for depreciation is based on- a)The revalued amount over the estimate of the remaining useful life of such assets b)Market value of the assets c)Depreciated value of the assets d)Historical Cost of assets Correct answer is option 'A'.Can you explain this answer? covers all topics & solutions for CA Foundation 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In case the depreciable assets revalued,the provision for depreciation is based on- a)The revalued amount over the estimate of the remaining useful life of such assets b)Market value of the assets c)Depreciated value of the assets d)Historical Cost of assets Correct answer is option 'A'.Can you explain this answer?.
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In case the depreciable assets revalued,the provision for depreciation is based on- a)The revalued amount over the estimate of the remaining useful life of such assets b)Market value of the assets c)Depreciated value of the assets d)Historical Cost of assets Correct answer is option 'A'.Can you explain this answer?, a detailed solution for In case the depreciable assets revalued,the provision for depreciation is based on- a)The revalued amount over the estimate of the remaining useful life of such assets b)Market value of the assets c)Depreciated value of the assets d)Historical Cost of assets Correct answer is option 'A'.Can you explain this answer? has been provided alongside types of In case the depreciable assets revalued,the provision for depreciation is based on- a)The revalued amount over the estimate of the remaining useful life of such assets b)Market value of the assets c)Depreciated value of the assets d)Historical Cost of assets Correct answer is option 'A'.Can you explain this answer? theory, EduRev gives you an
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