When I revalue a fixed Asset, it appear under additions in the fixed asset summary. I believe it time Revaluation button is added among purchase cost, accumulated depreciation and book value. So that after Revaluation a different column is created among opening balance, additions, depreciation, disposal and closing balance
A ‘Revaluation surplus’ equity account must be created by default for Revaluation of assets purposes. For reporting sake
Can you provide an example of why you would revalue an asset? Fixed assets are normally valued at purchase cost (possibly including tax, installation, freight, etc.) and then depreciated. I am not familiar with any situation in which you would revalue one. Is it possible that by “revaluation” you mean assigning a value that reflects depreciation? That would normally be handled via a depreciation expense account periodically cleared to the fixed asset.
I am in Ghana and we use IFRS (international financial reporting standards) from IASB.
IASB requires companies to disclose gain on Revaluation of assets and losses on Revaluation of assets. Fair value of land and buildings must be reported all times using Revaluation.
An increase shall be recognised directly in equity except to the extent that it reverses a Revaluation decrease of the same asset previously recognised.
The Revaluation surplus may be transferred directly to retained earnings /income surplus when the asset is derecognised or disposed.
Read IAS 16 (Property Plant and Equipment) you will appreciate what I am saying. To get things clearer.
Well, I learn something new every day. Thanks.
This is also possible in Australia, I’ve seen a few financial statements with Revaluation reserve equity account so I’m somewhat familiar.
Manager doesn’t have any special way to support this currently.
So for the time being, revaluations can be recorded as journal entries where you debit/credit Fixed assets account and Revaluation reserve equity account.
I will be working on fixed assets module soon, mostly to accommodate for easier depreciation management but I’ll look into this too.
That will be great so that gains and losses that doesn’t go through the Profit and loss statement can be managed simply
I think the simple solution is this:
if any ledger/account is credited to revalue asset upward (asset debited) or is debited to revalue asset downward (asset credited), let the account show in the fixed asset schedule with its amount but not aggregated into additions or disposal or any of the headings there. with this we can create a revaluation account and manually do all the adjustment we want there