Asset Revaluation – An overview

Introduction

Fixed Assets that are otherwise represented in financial statements on a historical cost basis may sometimes be represented at a valuation in substitution for historical costs. This may be required to adjust the cost of assets due to inflation or deflation. The Asset Revaluation component helps in re-valuing the book value of fixed assets that have appreciated or depreciated extraordinarily in the course of their life in the organization. As a result of this the value of the assets as reported in books after revaluation would reflect the true and fair picture of its value at any point of time.

An increase in net book value arising on revaluation of fixed assets is normally credited directly to owner's interests under the heading of revaluation reserves and is regarded as not available for distribution.

 Feature Highlights 

• Supports upward, downward revaluation, linked upward and linked downward of asset. Revaluation can be done for a single asset, asset class, and depreciation category or asset tag.

• Facility to preview the revaluation results before actual revaluation. Revaluation can be done depreciation book wise.

• Supports soft revaluation (insurance and reporting purposes), revaluation increase/decrease by percentage, revaluation of asset both by an amount or to an amount, revaluation based on indexes, revaluation of accumulated depreciation, depreciation of revaluation cost with same or different parameter, capturing the revaluation cost to a separate asset account, impact of revaluation on asset cost and depreciation, reversing hard revaluation before calculating depreciation on re-valued assets, automatic revaluation run on defining of revaluation rules, posting Revaluation (hard) entries into Finance Book through Account Rule definition. 

List of Activities