THE DIFFERENCES BETWEEN REVALUATION AND ASSETS IMPAIRMENT
THE DIFFERENCES BETWEEN REVALUATION AND ASSETS IMPAIRMENT

Summary/Abstract: Impairment and revaluation are terms closely related to one another, with subtle differences. Revaluation and impairment both require the company to evaluate the assets for their fair value, and then take appropriate action in updating the accounting books. The major difference between the two is that a revaluation can be made upwards (to increase the value of the asset to market value) or downwards (to decrease the value). An impairment, on the other hand, only refers to one of the two; a fall in the market value which is then written down. The purpose of the paper is to establish what are the differences between revaluation and impairment of assets.

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