REVALUATION (OF ASSETS)
12 May 2016 By PDSNETWhen a company purchases an asset the transaction is normally recorded in the books of account at purchase price (known as the book value). In time, however, the asset may come to be worth more or less than the price that was paid for it. Where this is the case, the directors may decide to have the asset re-valued by an independent assessor. If the asset's value is increased then a "revaluation reserve" will be created - which is a non-distributable reserve.
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