Value Proposition:
Revaluation is not just a “new number” written in the record; it is a complete accounting cycle:
Carrying Amount before revaluation → Fair Value (from appraiser’s report) → Surplus/Deficit → OCI/P&L impact → Depreciation Reset → JE Pack.
This template ensures that you do not confuse the increase with OCI, do not overlook the treatment of a decrease if there is a prior surplus, and do not incorrectly update depreciation.

In 20 Seconds: What Will You Get?

• Asset Revaluation Sheet: Input asset data and carrying amount before revaluation (Cost/Accumulated Depreciation/Carrying Amount).
• Fair Value Capture: Enter the new valuation amount + valuation date + appraiser’s report reference.
• Revaluation Surplus/Deficit: Calculate the increase/decrease and determine its direction (OCI or P&L) based on the existence of a prior surplus.
• OCI Reserve Ledger: Track revaluation surplus for each asset/class (Opening/Movement/Closing).
• Accumulated Depreciation Treatment: Support two methods:
  (1) Proportionate restatement of accumulated depreciation or
  (2) Elimination of accumulated depreciation against the asset.
• Updated Depreciation: Update depreciation after revaluation (Remaining useful life + residual value) and derive the new installment.
• JE Pack: Ready entries for increases/decreases + transfer of the impact of decrease/increase as per the rule.
• Disclosure Notes: Concise disclosure points (valuation date/method/OCI surplus movement).
• Controls: Alerts: Fair Value without reference, zero remaining life, unexplained negative OCI, revaluation of an asset outside its class.

Suitable For

• Companies applying the revaluation model under IAS 16 for specific classes (e.g., land/buildings).
• Entities subject to external audit that require a clear evidence file (Report Reference) and OCI Ledger.
• Finance teams looking to standardize the treatment of increases/decreases and update depreciation after revaluation.

Not Suitable For

• Entities that only apply the cost model and do not implement the Revaluation Model.
• Cases where reliable Fair Value or a verifiable valuation report is not available.

Without the Template / With the Template

Before Use: 5 Symptoms of Uncontrolled Revaluation

• Revaluation surplus is unknown in balance and movement (Weak OCI Tracking).
• Decreases are recorded directly in P&L despite the existence of a prior surplus for the same asset/class.
• Depreciation after revaluation is not recalculated from the new value and remaining life.
• Lack of clarity on how to handle accumulated depreciation during revaluation.
• Difficulty in preparing disclosures or audit files linking numbers to the valuation report.

After Application (Two Points Only)

• Accounting Consistency: Same treatment for increases/decreases with clear OCI Ledger and calculated depreciation update.
• Auditability: Fair Value Reference + JE Pack + Disclosure Notes ready for review.

How Does the Template Work Practically?

1) Define the Scope of Revaluation (Class of PPE)

• The application is on a complete class of assets (e.g., Buildings) and not selectively on an individual asset.
• Document the valuation date, method, and report reference.

2) Calculate the Increase/Decrease (Surplus/Deficit)

• Carrying Amount before revaluation versus Fair Value after revaluation.
• The increase is recorded in OCI (Revaluation surplus) unless it reflects a prior decrease in P&L for the same asset.
• The decrease is first deducted from the related OCI surplus (if available for the same asset/class) and then any remaining amount is recorded in P&L.

3) Handle Accumulated Depreciation

• Select a method: Elimination or Proportionate Restatement and document it within the template.
• Update Cost/Accumulated Depreciation to arrive at a new Carrying Amount consistent with Fair Value.

4) Update Depreciation after Revaluation

• Depreciable amount = New Carrying Amount − Residual Value.
• New installment = Depreciable amount ÷ Remaining Useful Life.
• Preserve the impact of the change in installment as part of the internal disclosure file.

5) Prepare Entries (JE Pack)

• Increase entry (Asset / OCI) or decrease entry (OCI / Asset) or (P&L / Asset) as applicable.
• Entries to update accumulated depreciation according to the chosen method.
• (Optional) Transfer OCI surplus to retained earnings upon disposal according to the entity’s policy.

Template Components

1. Asset Revaluation Input: Asset data before revaluation.
2. Fair Value & Reference: Valuation amount + report reference.
3. OCI Reserve Ledger: Balance of revaluation surplus and its movement.
4. Accumulated Depreciation Treatment: Handling of accumulated depreciation.
5. Depreciation Reset: Update installment after revaluation.
6. Journal Entries: Entries for increases/decreases + brief memos.
7. Disclosure Notes: Concise disclosure points.
8. Controls: Data validity alerts.

If You Want “Managed” Revaluation (Correct OCI + Updated Depreciation + Consistent Entries)

Download the Asset Revaluation Template Now