What happens if, as a result of revaluing property, plant or equipment, the estimated useful life of the asset changes?
Some have noted that, in the process of revaluing property, plant and equipment on transition to accounting standards for private enterprises, they are discovering that previous estimates regarding useful life need to be changed. On revaluing at the date of transition the revalued amount becomes the deemed cost at that date. Subsequent depreciation, based on the estimate of useful life made on transition, is recognized from that date.
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