Calculation of Upward and Downward Revaluation

Calculation of Upward and Downward Revaluation

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

• 3 - Upward revaluation on acquisition accounts - This standard allows (it is not binding) you to revaluate fixeda asset in case of its acquisition at home or abroad, and if the debt to supplier will not be paid to the year-end (e.g. a loan). The company may in such a case disclose the arranged amount of revaluated debt as an increase in the original purchase value and is a base for depreciation calculation that is disclosed as cost.
• 4 - Upward revaluation on upward rvaluation accounts - Fixed asset MAY BE revaluated - upward revaluation can be performed if its PROVEN fair value exceeds its accounting value. That is the carrying value of fixed asset. Fair value can be established only by the authorized valuers.
• 5 - Downward revaluation on downward revaluation accounts - Fixed asset has to be in accordance with the SRS 1.29 revaluated - downward revaluation if its accounting value exceeds its recoverable amount. You may count pure purchase value or value in use as recoverable amount. It depends on which is larger. Such a decrease represents a loss due to downward revaluation and is disclosed as revaluated operating expense (and not as an increase in depreciation cost)