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Asset Revaluation

The Revaluation feature allows you to adjust the carrying amount of fixed assets to their fair value, in compliance with IAS 16 / CPC 27. The process is done in batches, with a mandatory valuation report attachment.

General Flow

  1. Create a revaluation batch (period + accumulated depreciation treatment)
  2. Add items to the batch (one asset per item, with the assessed fair value)
  3. Attach the valuation report (required to confirm)
  4. Confirm the batch — accounting entries are generated automatically

Batch Status

StatusDescription
DraftBatch under editing. Items and attachments can be added or removed.
ConfirmedBatch closed. Cannot be edited. Entries already posted.

Create a Revaluation Batch

  1. Go to Operations → Revaluation
  2. Click + New Revaluation
  3. Fill in:
    • Accumulated Depreciation Treatment — Choose the accounting method (see below)
    • Description — Free-text note (optional)
  4. Click Save

Accumulated Depreciation Treatment

When revaluing an asset, the existing accumulated depreciation must be handled. IAS 16 allows two methods:

Gross Replacement

The gross cost and accumulated depreciation are proportionally restated to the new fair value. The asset retains its "original" appearance in reports.

Example: Asset with cost R$ 100,000 and accumulated depreciation R$ 40,000 (carrying value R$ 60,000), revalued to R$ 90,000:

  • Factor = 90,000 / 60,000 = 1.5
  • Cost after: R$ 150,000 | Depreciation after: R$ 60,000 | Carrying value: R$ 90,000

Proportional Elimination

Accumulated depreciation is zeroed out and the gross cost is directly set to the fair value. Simpler method, most common in practice.

Example (same asset):

  • Cost after: R$ 90,000 | Depreciation after: R$ 0 | Carrying value: R$ 90,000

Add Items to the Batch

  1. In the batch detail (Draft status), click + Add Item
  2. Fill in:
    • Asset — Select the asset to be revalued
    • Fair Value — Value assessed in the valuation report (required, > 0)
    • Accumulated Depreciation Treatment — Can be overridden per item
  3. Click Save

The system automatically calculates:

  • Carrying value before revaluation
  • New cost and accumulated depreciation balances
  • Revaluation Surplus (Other Comprehensive Income — OCI)
  • Any P&L Loss (when fair value < carrying value)

Batch Import

For large volumes, items can be imported via spreadsheet:

  1. In the batch detail, click Import
  2. Download the spreadsheet template
  3. Fill in asset data and fair values
  4. Upload the completed spreadsheet

Attach Valuation Report

Confirmation requires at least one attachment (appraiser report, internal assessment etc.):

  1. In the Attachments section of the batch detail, click Attach file
  2. Select the file (PDF, DOCX, XLSX etc.)
  3. The file is linked to the batch for audit purposes

Confirm Batch

Prerequisites
  • The batch must have at least one item
  • The batch must have at least one attachment
  1. In the batch detail, click Confirm
  2. Confirm the operation in the dialog
  3. The system posts the accounting entries and changes the status to Confirmed

After confirmation, the batch can no longer be edited.

Revaluation Impacts

When confirming the batch:

  • Asset cost and accumulated depreciation values are updated
  • The Revaluation Surplus is posted to OCI (Equity)
  • Any losses are posted to the Period Result (P&L)
  • Future depreciation is recalculated based on the new carrying value