Describe revaluation method to calculate depreciation
Briefly describe revaluation method to calculate depreciation?
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Within this method the fixed assets are valued at the end of every accounting era. The differentiation between the value at the commencement of the period and the value at the end of the period represents the depreciation value that is charged against the loss and profit account. This method is employed in case of assets such as packages, loose tools, Farmers’ livestock and so on.
Depreciation = Value of asset at the end – Value of asset at the beginning + Any new purchases
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