Réevalue

Réevalue is a term that can refer to several distinct concepts, primarily in the realms of economics and accounting. In a general economic context, to revalue something means to assign a new, often higher, value to it after a period of assessment or change in market conditions. This can apply to assets, investments, or even currencies.

In accounting, revaluation is a specific practice allowed under certain accounting standards, such as International Financial Reporting Standards (IFRS). When an asset is revalued, its carrying amount on the balance sheet is adjusted to its fair value at the date of revaluation. This typically applies to tangible assets like property, plant, and equipment, and sometimes to intangible assets. If the revaluation results in an increase in value, it is usually recognized in other comprehensive income and accumulated in equity as a revaluation surplus. A decrease in value might be recognized as an expense. The decision to revalue is often made when an asset's fair value has significantly changed and is reliably measurable. This contrasts with the cost model, where assets are carried at their historical cost less accumulated depreciation and impairment losses.

The process of revaluation requires careful consideration and often involves professional valuers to ensure accuracy and compliance with accounting principles. It can impact a company's financial statements, affecting its asset base, equity, and profitability ratios. The frequency and triggers for revaluation are usually dictated by the specific accounting standards being followed and the nature of the asset.