Belarus Changes Laws Concerning Reappraisal of Fixed Assets
OREANDA-NEWS. January 21, 2014. President of the Republic of Belarus Alexander Lukashenko signed Decree No. 37 to introduce amendments to a number of documents.
As part of the campaign to introduce the International Financial Reporting Standards in the Republic of Belarus the presidential decree has provided for a number of amendments and additions to Decree No. 622 of 20 October 2006 “Concerning the reappraisal of fixed assets, unfinished construction projects and uninstalled equipment”.
Particularly, the document envisages a differentiated approach to the reappraisal of fixed assets and interest-bearing investments into tangible asses depending on their types.
As far as buildings, installation and transmission facilities are concerned, the reappraisal of such assets will be obligatory if the inflation exceeded 100% since the previous reappraisal which had been carried out in accordance with the legislation.
The level of inflation will be calculated and published by the National Statistics Committee in December of the current calendar year. It will take into account the increase in prices in comparison with the level of November of the year prior to the latest mandatory reappraisal.
If the inflation does not reach the aforementioned level the decision to carry out the reappraisal of assets will be made by the organization of the property owner.
As for other kinds of fixed assets, interest-bearing investments into tangible assets (except for buildings, installation and transmission facilities) and equipment, the reappraisal of assets is to be made by the organization or the property owner.
In line with the Decree, unfinished construction projects and fixed assets which are to be decommissioned will not be subject to reappraisal.
Fixed assets which are to be decommissioned after the passing of the Decree are not subject to reappraisal. If the decision on decommissioning is cancelled by the person (body) which had made the decision such facilities will be reappraised on general terms.
In line with the amendments to Decree No. 622 of 20 October 2006, the amount of money gained after the reappraisal cannot be used to cover losses from the economic activity of organizations, including losses from decommissioning.
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