Calculations
Calculating carrying amount at the end of first year
Original cost ( price + direct costs)
X
Acc Dep (Total depreciation for the first year) (Cost-Res Value)/years)
(x)
Carrying amount at the end of first year
X
Revaluations at the beginning of second year
Net replacement value (given)
X
Carrying amount ( from balance at the end of first year above)
(X)
Revaluation gain/loss
X
Depreciation for second year ( Take the New revalued amount/remaining years)
X
Calculating carrying amount at the end of second year
Last Revaluation amount ( previous Net replacement value)
X
Depreciation for second year
(x)
Carrying amount at the end of second year
X
Depreciation for Third year after change in Residual
value and useful life
Take New Revalued amount at the beginning of third
year Less New Residual value/new remaining period
x
Calculating carrying amount at the end of third year
New Revalued Amount at the beginning of third year
x
Less depreciation for third year
(x)
Carrying amount at the end of the third year
x
PPE NOTE
Eg Building
First year
Original Cost
x
Accumulated Depreciation
(x)
Carrying amount
x
Second year
Revaluation done at the beginning of second year
x
Depreciation for second year
(x)
Third year
x
Revaluation gain/loss at the beginning of third year
x
Depreciation for third year
(x)
New Revaluation amount
x
Less Acc Dep ( Dep for third year)
(x)
Carrying amount at the end of third year
x
Describe what happened during the year eg there was