- From the View Assets page, select the asset you would like to perform a Revaluation,
- Ensure you are in the appropriate regime (Accounts ONLY),
- Select 'Add',
- Select 'Revaluation',
- Chose your desired revaluation date, amount, and any notes.
- Select 'Save'.
Important: We have instances where clients have revalued assets, then created a new & separate asset for this. We recommend using our Revaluation function to revalue assets (under Add -> Revaluation), rather than creating the revaluations as separate assets. This allows AssetAccountant to track any Revaluation Reserve so that you can account for this correctly.
Note: Revaluations and Impairments are IFRS and USGAAP Accounting Standards treatments and are different. Ensure compliance in your jurisdiction before saving or seek accounting advice (our staff and support team cannot offer this).
The difference between revaluations and reassessments of assets and therefore different forward depreciation calculations
There is a distinct differences between revaluations and reassessments of assets. These are both asset treatment features of AssetAccountant that sometimes get confused and conflated.
When assets are Revalued, it doesn't necessarily mean that their useful life will need to change.
However if you decide that an asset's useful life needs to change, you can use a Reassessment to do that.
Revaluations NO NOT affect the effective life of an asset.
Reassessments DO affect the effective life of an asset.
Revaluations will typically affect forward depreciation as the asset continues to be depreciated to zero by the end of its determined end of useful life. Therefore the calculations you see may on first glance appear to be wrong to you, but this is the correct treatment.
A revaluation example:
* Asset acquired for $1M and depreciated prime cost over 10 years -> $100k per year
* Asset revalued from $500k to $2M in year 5
* As the asset has only 5 years remaining to depreciate, it will depreciate at $400k per year thereafter
Alternatively with a Reassessment, you are explicitly resetting the remaining life of the asset and therefore the depreciation rate going forward.