Revaluation of Assets

Revaluation of assets involves adjusting the recorded value of a company's assets—such as property, equipment, or vehicles—to reflect their current market worth. Over time, assets may appreciate (increase in value) or depreciate (decrease in value), so periodic revaluation ensures the financial statements accurately represent their true worth. This process can impact a company's balance sheet, affecting reported assets, equity, and sometimes taxes. Revaluation is typically done by professional appraisers or based on market data, providing stakeholders with a more accurate picture of the company's financial position.