Acca financial Accounting (FA) Study Text ac ca (FA)

Non-current assets: disposal and revaluation 

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KAPLAN PUBLISHING

 

6 

If assets are stated at revalued amounts, the following should be 

disclosed: 

– 

the effective date of the revaluation 

– 

whether an independent valuer performed the valuation 

– 

the methods and assumptions applied in estimating the items’ fair 

value 

– 

the carrying amount that would have been recognised had the assets 

been carried at cost 

– 

the revaluation surplus, indicating the change for the period. 

Note:

 Items (3) and (4) are often referred to as preparation of the movements 

schedule or grid for the year. 

If there has been a revaluation of property, plant and equipment in the year, this 

may be performed by either an employee or director of the company, or by an 

independent third party. Who performed the valuation is regarded as relevant or 

useful information to those who make investment decisions based upon the 

content of the financial statements. If the valuation was performed by an 

employee or director of the company, although it is permitted by IAS 16, there is 

potential for objectivity to be compromised, and therefore details of the valuer 

should be disclosed in the notes to the financial statements. The movements 

schedule or grid is illustrated as follows: