Reversal of Upward and Downward Revaluation

You may calculate upward and downward revaluation in the following entry types to the fixed asset register:

• 7 - Reversal of upward revaluation
• 8 - Reversal of downward revaluation

It is typical for these two types that prior to the reversal of upward or downward revaluation there must exist upward revaluation on upward revaluation accounts (type 4) or downward revaluation on downward revaluation accounts (type 5) to be reversed. Of course you have already calculated depreciation for such posts: for upward revaluation of type 4 this is depreciation on upward revaluation accounts (type 22), and for downward revaluation it is depreciation on downward revaluation accounts (type 23).

• If you posted upward revaluation for fixed asset and in the next accounting periods it is necessary to post downward revaluation this is done so that you FIRST (entirely or partially) reverse upward revaluation and only then post also the possible downward revaluation (see 5- Downward revaluation on downward revaluation accounts).
• If you posted downward revaluation for fixed asset and in the next accounting periods it is necessary to post upward revaluation this is done so that you FIRST (entirely or partially) reverse downward revaluation and only then post also the possible upward revaluation (see 4- Upward revaluation on upward revaluation accounts).
• The procedure of reversing of upward or downward revaluation can be done in the same way also by the disposal of fixed asset (e.g. by disposal of fixed asset or by its permanent deactivation).