Question

Where depreciable assets are revalued, then according to Accounting Standard-6 depreciation amount should be based on____________.

• A. Historical cost and profit on revaluation should be transferred to P and L a/c
• B. Revalued amount
• C. Depreciated value of the asset
• D. Accounting Standard-6 does not specify anything in this regard

Answer 1

The correct option is B Revalued amount

AS-6 deals with depreciation on fixed assets hence, depreciable assets are revalued, then depreciation amount should be based on revalued amount of the asset.