Revaluation

Revaluation refers to the process of adjusting the value of an asset or liability to reflect its current market value. Revaluation is commonly used for fixed assets, such as property or equipment, on a company's balance sheet. It can also apply to currencies, where a country's central bank may adjust the value of its currency relative to others. Revaluation can impact a company’s financial statements, increasing or decreasing asset values and affecting profitability and taxes.

Example

A company revalues a piece of real estate that has appreciated significantly in the market, increasing its book value on the balance sheet to reflect the current market price.