7 - Reversal of Upward Revaluation

 To post this type of entry you shall need the same accounts from the fixed asset register as in posting of the type 4 - Upward revaluation on upward revaluation accounts, the only difference being that the post is reversed:

• to post to the debit side: 
  • Upward revaluation - Credit (e.g. 0351K)
  • Upward revaluation - Difference  (e.g. 9510K)
• to post to the credit side: Upward revaluation - Debit (e.g. 0211D)

To establish the appropriate carrying value and with this the corresponding difference from the new value it is MANDATORY that you prior to the entry of reversal of upward revaluation calculate depreciation to the date of reversal of upward revaluation.

• If you have posted upward revaluation for fixed asset and in the future accounting periods there occurs a need to post downward revaluation, then this is done so that you FIRST (entirely or partially) reverse the upward revaluation and only later you also post the possible downward revaluation (see 5- Downward revaluation on downward revaluation accounts).
• The procedure of reversing of upward revaluation is performed also by the disposal of fixed asset (e.g. by disposal of fixed asset or by its permanent deactivation).

For example see:

• Reversal of upward revaluation