Frequency of revaluations

Learning objectives

• Determine whether a new revaluation is required in the light of changes in fair value.L2, L3

Normative references

• IAS 16 §31Revaluation model: if fair value can be measured reliably, revalued amount (fair value at the date of the revaluation less any subsequent accumulated depreciation and impairment losses); revaluations made with sufficient regularity.
• IAS 16 §34The frequency of revaluations depends on changes in fair values: a further revaluation is required when the fair value differs materially from the carrying amount; annual revaluation is required for items whose fair value changes significantly and volatilely; revaluation every three or five years may be sufficient when changes are insignificant.

Original summaries of the paragraphs (reference register), never a quotation of the standard.

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