chapter  24
2 Pages

Fixed Asset Revaluation

Kenana Sugar Company is registered in Sudan, and is therefore governed by Sudan's Companies Act. One of the provisions of this Act is that all accounts of a Sudan registered company are to be maintained in Sudanese currency, which means that foreign currency expenditure incurred is converted at the applicable exchange rate into Sudanese pounds and a record kept of the transactions. The company's conservative accounting policy requires maintenance of the accounts, including the recording of fixed assets at historical cost.