How to revalue an asset

Over the life of an asset some assets can change in value either positively (they are worth more) or go down in value. Your accountant or tax advisor will let you know what to do either way.
As a guide, revaluation might be done for many reasons such as: 
  • Building improvements (ie additions and additional work, 
  • The actual value of the asset going up (ie land price increases 
  • Artwork being appraised at a higher price
  • Software projects having additional code being written therefore adding value

How to revalue an asset in Asset.Guru:

  1. Click into the asset you would like to revalue from the asset register
  2. Select Revalue in the Focus View (as pictured below)

  3. Enter the date you would like the revaluation to take effect in the Revaluation Date field

  4. Enter the new value of the asset in to the Revaluation field

  5. Select the Depreciation Type and enter a Depreciation Rate or the Term Remaining as of the date of revaluation

  6. Click Next (or Confirm if your account is not integrated with Xero or QuickBooks Online)

    NB. If you are connected to Xero or QuickBooks Online, you may choose whether you would like the related journals for the revaluation to be posted into your accounting package by ticking or unticking the checkbox at the bottom of the image provided above. If you choose to post the journals through Asset.Guru, continue to Step 7.
  7. You will be shown the revaluation journal entries to be posted by Asset.Guru into your accounting system. A dropdown menu that lists your chart of accounts will be provided for any journal entries that have not been mapped during the asset type setup. Please reviw the journals provided on the screen and click Confirm when you are done.

    Important Note:
    If your revaluation occurs in the current month (before monthly depreciation has been posted), there will be no impact on depreciation, as this will be reflected in the monthly depreciation posting.

    If the revaluation date is at a historical date (not within the current month), then there will be an additional adjustment for the depreciation expense associated with the asset.

You're all set ! Well done!

Remember: As always, please seek advice from a qualified professional like your CPA, CA, accountant, tax advisor or certified professional before carrying out a revaluation. Asset.Guru does not provide any  financial advice or tax advice.

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