Explore commonly used personal finance terms.
Asset revaluation involves adjusting the recorded value of an asset to match its current market value. Revaluation is common for fixed assets like property, plant, and equipment, where market conditions may increase or decrease their value over time. Businesses perform asset revaluation to present a more accurate picture of asset values on their balance sheets, impacting depreciation and overall financial reporting. This process is essential for accurate financial planning, taxation, and improving transparency in asset valuation.
