Revaluation Surplus
Financial Dictionary — Equity
Definition
The revaluation surplus shows increases in the fair value over the historical cost. For information, in the event of a revaluation of assets, the surplus is classified as an equity item, or as goodwill in possession, or according to the case as a revaluation of the slow moving inventory.
Detailed Explanation
Revaluation surplus is the increase in carrying amount of an asset from revaluation, recognized in equity (OCI) under applicable standards unless it reverses a prior decrease.
Common Uses
- Used to explain the concept in accounting and business contexts.
- Used when training staff or documenting procedures and policies.
- Used when training staff or documenting procedures and policies.
Practical Example
- Example: Teams reference **Revaluation Surplus** when defining terms in manuals, policies, or training materials.
Why This Term Matters
- Why it matters: Improves clarity and consistency across documentation and decision-making.