Subsequent Measurement of PPE

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....er recognition as an asset, an item of property, plant and equipment shall be carried at its cost less any accumulated depreciation and any accumulated impairment losses. i.e., - Cost XXX Less: Accumulated Depreciation (XX) Less: Accumulated Impairment Loss (XX) Net Carrying Amount XXX Revaluation Model - After recognition as an asset, an item of property, plant and equipment whose fair v....

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....fers materially from its carrying amount, a further revaluation is required. Some items of property, plant and equipment experience significant and volatile changes in fair value, thus necessitating annual revaluation. Such frequent revaluations are unnecessary for items of property, plant and equipment with only insignificant changes in fair value. Instead, it may be necessary to revalue the item....

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....If it is downward revaluation - Revaluation loss should be charged to P&L A/c P&L A/c Dr. XXX To PPE A/s XXX When PPEs are SUBSEQUENTLY revalued: The following treatment based on the first time revaluation (Upward/Downward) If First time upward revaluation * Next time also upward revaluation - Further increase should be recognized in 'Other Comprehensive Income' (OCI) and accumulated equit....