It is MANDATORY that you calculate depreciation to reversal date before entering the reversed amount to assess correct carrying amount and with it the difference to the new value.

• If you posted upward revaluation amount of fixed asset, you now have to post impairment amount. To do this, you FIRST have to reverse upward revaluation (completely or partially). Only then can you post impairment (see 5 - Downward reval. on downward reval. accounts).
• Do the same as with liquidation of fixed asset (e.g. disposal of fixed asset or its deactivation).

Example:

Let us for example take a look at a partially depreciated upward revaluation in topic 22 - Depreciation on Upward Reval. Accounts.

On January 1st, 2008 the value of fixed asset is according to the appraiser's estimate lower by €18,919.89 than its book value on acquisition and revaluation accounts. A 5% depreciation rate is applied.

Depreciation was calculated to appraisal date. That is why you only enter reversed revaluation amount and select type 7. Then select Calculate from the right-click menu, confirm the calculation and post the amount. In addition, you are automatically offfered total carrying amount of revaluation.

You can proceed by recording calculated amounts (manually or by selecting the corresponding function). Then post the line by clicking Post Value Adjustment.

Below you can observe lines of journal entry:

For transparency sake we manually entered the revaluated amounts and posted them subsequently. To directly calculate reversal of upward revaluation and post the amount you can use Calculate function in the right-click menu (see Reversing Upward Revaluation and Impairment).

For a general description of functions see:

• Reversal of Upward Revaluation