Question { KPMG, 18022 }

how do u explain depreciation adjustment, deferred
depreciation expense, deferred depreciation reserve

Answer

Depreciation adjustments arise due to reclasifying the
asset or revaluing the asset as of previous period or
changing the depreciation rates.

This is quantum of depreciation amount had to be expensed
or amortized over a period of time.

For Example if we are reclassifying the asset, it will be
depreciated as per new classifcation, the extra dep which
arise due to change in classification can be expensed in
the current period or written of over a period of tme.

From the above extra depreciation is the DEPRECIATION
ADJUSTMENT.


The extra depreciation amount kept aside for amortization
is called DEPRECIATION RESERVE.

Difference in Depreciation between corporate and Tax is
Stored in Depreciation Reserve.

Question { Datamatics, 10867 }

What is catch up depreciation

Answer

Catch up depreciation is depreciating the asset in the
current period so as to bring the asset to correct value.

This is done in case if the asset had been underdepreciated
in previous periods and to correct the error we depreciate
it to bring to acceptable levels.

Suggestions welcome

Question { Wipro, 12267 }

what is the main difference between the MRC and Revaluation?
can any one tell me.

Answer

MRC - Multiple Reporting currency is reporting aid which
converts day to day transactions to other foreign currency
as required.

Revalaution is revalaueing foreign currency amounts as per
current exchange rate.

In MRC the source transacation is in Functional currency .

In Revaluation the source transaction is in Foreign
currency.

For MRC we need 2 Set of Books Primary and Reporting

Revaluation can be in the same SOB where transaction
resides.

In MRC all transactions( Assets, Liabilities, Exp....)ir
respective of their type they get converted.

Revaluation is performed only on Assets and Liabilities.

MRC has to be set once and the transactions keep flowing

Revalaution has to be initiated by user.