115 CFA
File: - Financial Analysis - Reading 26 - 4. The Revaluation Model

4. The Revaluation Model

h. describe the revaluation model;

What is the purpose of revaluation and why is it important?
The purpose of a revaluation is to bring into the books the fair market value of long-lived assets. The balance sheet is more informative when assets and liabilities are stated at market value rather than historical cost. IASB and some other non-U.S. GAAP do permit upward revaluations.

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