Fixed Assets - Asset Valuations - Revaluation

This screen is used for revaluing a fixed asset. A revaluation can be performed to increase or decrease the capital value of a fixed asset. It will usually be performed as a result of a professional valuation.

An initial valuation must exist for the asset in the book in which it is to be revalued.

The revaluation will post the change in capital value to the Revaluation Reserves Account nominated for the asset. The depreciation to date will be posted to the Revaluation Reserves Account or the Asset Cost Account nominated for the asset, controlled at the company level.

Where Depreciation of Revaluation Reserves has been specified on the FA Company controls any positive Revaluation reserve will then be depreciated over the remaining life of the Asset.

Negative Revaluations will be posted to the Revaluation P&L Account (which consists of two accounts: - Revaluation P&L Income and Revaluation P&L Expenditure). The postings do not depend on the amount held on individual assets but are determined by the amount held on the asset Category. If postings already exist in the P&L account for the Category and a positive revaluation is made, the posting to the Revaluation P&L must first be reversed out. The Revaluation Reserve account must be zero before any postings can be made to the Revaluation P&L Account; and vice versa.

The interaction between revaluations and impairments is controlled by the Revaluation Control Indicator on the FA Company Controls.

Where IFRS is in use then a revaluation will be offset against any previous impairment.

Where SORP is in use then a revaluation can be offset against any previous impairment dependant on the reason code used.

NOTE The menu path shown is the default for the system. Your company may have customised menu options, so the path shown may not be accurate. Please contact your system administrator for details.