An adjustment to the book value of an asset to reflect its current market value; seldom allowed under Generally Accepted Accounting Principles (GAAP).
Backlog depreciation refers to the additional depreciation charge that occurs when an asset is revalued, causing an increase in accumulated depreciation.
In a partnership, the revaluation account captures changes in the value of assets and liabilities when a new partner is admitted, or an existing partner exits. It ensures that these adjustments are equitably shared according to the partnership agreement.
The revaluation reserve account is a reserve accounting entry where unrealized profits or losses from the revaluation of fixed assets are recorded. It's essential for financial accuracy and compliance in the revaluation method used.
