Increases go to a revaluation surplus in equity, while decreases are charged first against that surplus and then to profit or loss. Once chosen it applies to the whole class of assets and is separate from the tax-basis revaluation.
Source: TMS 16
Related terms
Property, plant and equipmentPhysical assets used in the production of goods and services, for rental or for administrative purposes, and expected to be used for more than one period.Fair valueThe price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.Revaluation (tax)Bringing depreciable assets and their accumulated depreciation up to current values under tax legislation.Accounting estimatesThe determination by management judgement of amounts that cannot be measured precisely, such as provisions, useful lives, expected credit losses and fair values.Accounting policiesThe specific principles, bases, conventions, rules and practices an entity applies in preparing its financial statements.Accrual basis of accountingThe principle of recording transactions as income, expenses, assets and liabilities in the period in which they occur, rather than when cash is received or paid.
Last updated: November 8, 2026 · This definition is for general information only.