revaluation reserve account

= asset revaluation reserve
The reserve account to which the unrealized profit or loss on revaluation must be taken when the alternative accounting rules are used for the valuation of an asset. Companies have the option of choosing another name for this reserve if they wish. The revaluation reserve should be reduced to the extent that the amounts transferred to it are no longer necessary for the purpose of the valuation method used. The treatment for taxation purposes of any amounts credited or debited to the revaluation reserve must be disclosed in a note to the accounts.

Accounting dictionary. 2014.

Look at other dictionaries:

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  • Revaluation of fixed assets — In finance, a revaluation of fixed assets is a technique that may be required to accurately describe the true value of the capital goods a business owns.Fixed assets are held by an enterprise for the purpose of producing goods or rendering… …   Wikipedia

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  • Capital Reserve —    A part of shareholders funds that comes from a revaluation of capital assets and not from the normal operations that are recorded in the profit and loss account. * * * capital reserve UK US noun [C, usually plural] ACCOUNTING, FINANCE ► an… …   Financial and business terms

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