Revaluation of fixed assets

The value of a fixed asset may be increased by revaluation, even if the asset has already been fully depreciated. Only a positive residual value can be depreciated, that is, the accumulated depreciation must not be greater than acquisition value. Often, revaluation is used to recognize the effect of inflation.

The value of a fixed asset may be decreased by revaluation, for example, impairment, typically to reflect a fair market value.