Markets
Platforms
Accounts
Investors
Partner Programs
Institutions
Contests
loyalty
Trading Tools
Resources
Revaluation refers to the process of adjusting the value of an asset or liability to reflect its current market value. Revaluation is commonly used for fixed assets, such as property or equipment, on a company's balance sheet. It can also apply to currencies, where a country's central bank may adjust the value of its currency relative to others. Revaluation can impact a company’s financial statements, increasing or decreasing asset values and affecting profitability and taxes.
A company revalues a piece of real estate that has appreciated significantly in the market, increasing its book value on the balance sheet to reflect the current market price.
• Adjusts the value of an asset or liability to reflect its current market value.
• Common for fixed assets like property or equipment.
• Can also apply to currencies in the context of foreign exchange markets.
To ensure that their financial statements reflect the current market value of their assets, improving accuracy and compliance.
It can increase or decrease the value of assets, impacting profitability, taxes, and shareholders' equity.
Revaluation adjusts asset value to market conditions, while depreciation gradually reduces an asset’s value over time due to wear and tear.
Start Your Journey
Put your knowledge into action by opening an XS trading account today
Register to our Newsletter to always be updated of our latest news!
