Revaluation of fixed assets is required when in the process of production, they wear out.Current legislation has established a classification of this type of assets during their useful life, the depreciation charge of the order.Any company has the right to appoint the increase in the depreciation rates independently, as well as select a suitable method of depreciation.
Even taking into account the fact that the revaluation of fixed assets enables enterprises to significantly save on tax payments or increase the value of its assets, not all of them, taking into account use of the opportunities provided by the legislation.In carrying out this operation it is possible to reduce income tax by increasing the rate of depreciation.It should be noted that the depreciation charge for the period of use of the basic means are carried out uniformly, but the market prices of equipment vary with different rates.The result of all this it is that between the market and book value of equipment produced is a big difference, and it distorts the data on the actual cost of the equipment.
valuation and revaluation of fixed assets is required, and in order to be able to more accurately determine the financial results, which, without these procedures are distorted, giving the wrong impression about the real investment needs.With understated depreciation can not fully compensate the process of disposal of fixed assets.When revaluation of fixed assets is carried out on a regular basis, it allows you to align the market and book value.The only way to effectively manage non-current capital of the company.This procedure affects positively on margins, the amount of the net assets of their turnover, which helps to improve the financial performance of the organization.
Revaluation of fixed assets - this is a very labor-intensive process that requires the presence of certain materials as well as experienced professionals.When the transfer or sale of the property, this procedure will determine its real market value.The review is usually carried out once a year.It is produced by determining the current or historical cost, accumulated depreciation of the operational period.In this process, the experts produce an inventory of objects, and then a determination of financial models that are optimal.Revaluation of fixed assets, postings that have to be taken into account in the balance sheet is part of a nation-wide activities aimed at determining the price of the property of the organization.When carrying out the procedures in a timely manner the company can not only increase the price of assets, but also get the possibility to increase the size of the authorized capital of the company.
revaluation of fixed assets may be carried out by the organization itself or with the assistance of outside experts in the field.This procedure can be carried out both by the organization as a whole and for its individual units.
