investment revaluation reserve

A reserve created by a company with investment properties, if these properties are included in the balance sheet at open-market value. Changes in the value of investment properties should be disclosed as movements on the investment revaluation reserve, unless the total of the investment revaluation reserve is insufficient to cover a deficit, in which case the amount by which the deficit exceeds the amount in the investment revaluation reserve should be charged to the profit and loss account. In the case of investment trust companies and property unit trusts it may not be appropriate to deal with these deficits in the profit and loss account; in these circumstances they should be shown prominently in the financial statements.

Accounting dictionary. 2014.

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