Asset Reversal

[Former Member]

Hi Experts,

We have capitalized (CWIP to ASSET) a Asset in April 2010 with 2,00,000 Rs. We used is this Asset April to September 2010. Dep for the month of April to September is posted. In oct 2010, we reverse the Assets documents through AB08.

Can you please tell me when we reverse the asset documents, it is transfer in CWIP in which value. 2,00,000 or WDV of the assets.

[Former Member]

Any Expert Advice.

[Former Member]

Dear experts,

waintinf for your reply

[atif_farooq]

Dear:

As per International accounting standard you have to reverse the asset at its Written down value which is Acquisition value-Accumulated depreciation till the date of reversal since during that period asset was in use and declined in terms of deprecation charge. Hence you should reverse it in terms of Written down value.

Regards