Accounting for Changes in the Market Value of Fixed Assets

, Accounting for Changes in the Market Value of Fixed Assets, Biedex: Technical Analysis, Stockmarkets Insights, Trading Tools

A company can account for changes in the market value of its various fixed assets by conducting a revaluation of the fixed assets. Revaluation of a fixed asset is the accounting process of increasing or decreasing the carrying value of a company’s fixed asset or group of fixed assets to account for any major changes in their fair market value.

Initially, a fixed asset or group of fixed assets is recorded on a company’s balance sheet at the cost paid for the asset. Afterward, there are two methods used to account for changes in the value of the fixed asset or assets.


Cost Model


Revaluation Model


Revaluation vs. Cost: How Do You Choose?

, Accounting for Changes in the Market Value of Fixed Assets, Biedex: Technical Analysis, Stockmarkets Insights, Trading Tools