Revaluation of fixed assets – IAS 16
Requirement
Subsequent to a revaluation, the carrying amount of an asset may increase. In that case, the increase is recognized in other comprehensive income and accumulated in equity in the revaluation surplus account. If the increase reverses a revaluation decrease of the same asset that has already been recognized in profit or loss, then it is recognized in profit or loss to the extent of the previous loss.
M3 solution
The IAS 16 requirement is supported by a fixed asset revaluation function in M3.
Configuration guidelines
| Program ID | Program name | Description or comment |
|---|---|---|
| FAS910 | Settings - Asset Revaluation | |
| CRS395 | Accounting Rule. Set | Configure rules for event FA90. |
| CRS405 | FAM Function. Open | Configure FAM function FA90. |
| FAS001 | Fixed Asset. Open | The date of the last revaluation is stored. |
| FAS050 | FA Depreciation Type. Open | |
| FAS060 | FA Value Type. Open | |
| FAS077 | Fixed Asset Type - Depreciation Type. Open | |
| FAS110 | Asset Revaluation |