revaluation

/riːˌvæljuˈeɪʃən/
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A fresh setting of value, from a general appraisal to an official currency increase or an accounting update to fair value.

Examples

  • Economists compared the proposed revaluation with a gradual market appreciation.
  • The auditor recommended a revaluation of the company's land holdings.
  • The town completed a property revaluation before setting the new tax base.
  • The insurance claim led to a revaluation of the damaged house.
  • The committee called for a revaluation of the project's likely cost.

Similar words

fair-value adjustment
appreciation
remeasurement
repricing
upward adjustment
carrying-value adjustment
appraisal
reappraisal
asset reappraisal
strengthening

Meanings

New estimate of worth

noun
everyday
neutral
A fresh judgment of what something is worth, important, or likely to cost.

Usage

Use revaluation when the value itself is being judged again, especially after new evidence, prices, or priorities have changed.

Examples

  • The insurance claim led to a revaluation of the damaged house.
  • A careful revaluation showed that the collection was worth far more than expected.
  • The committee called for a revaluation of the project's likely cost.
  • Changing tastes forced a revaluation of the artist's early work.
  • The town completed a property revaluation before setting the new tax base.

Common mistakes

Reevaluation is used when the question is broader than value.
IncorrectCorrect
The team made a revaluation of the safety plan. The team made a reevaluation of the safety plan.
The revaluation of the painting proved it was fake. The reappraisal of the painting proved it was fake.
The first revaluation set the original price. The first valuation set the original price.

Similar words

Currency value increase

noun
economics
technical
An official increase in a currency's value against other currencies, usually under a managed or fixed exchange-rate system.

Usage

Use revaluation for an upward official change in a currency rate, and use devaluation when the official value is lowered.

Examples

  • The government announced a revaluation of the national currency.
  • A revaluation of the yuan would make Chinese exports more expensive abroad.
  • Traders expected a revaluation after the central bank defended the peg.
  • The revaluation raised the official exchange rate against the dollar.
  • Economists compared the proposed revaluation with a gradual market appreciation.

Common mistakes

Devaluation is the opposite, not a type of revaluation.
IncorrectCorrect
The revaluation made imports more expensive for local buyers. The devaluation made imports more expensive for local buyers.
The central bank cut the currency's peg through a revaluation. The central bank cut the currency's peg through a devaluation.
A market revaluation of the pound happened overnight. A market appreciation of the pound happened overnight.

Similar words

Asset book-value adjustment

noun
accounting
technical
An accounting adjustment that restates an asset's carrying amount to reflect fair value rather than its old book value.

Usage

Use revaluation for the accounting model that updates an asset class to fair value, and be clear whether the result is a surplus or a decrease.

Examples

  • The auditor recommended a revaluation of the company's land holdings.
  • Under the revaluation model, the building is carried at fair value after each revaluation.
  • A revaluation surplus increased equity on the balance sheet.
  • The firm scheduled regular revaluation of its property, plant, and equipment.
  • A later revaluation reduced the asset's carrying amount after market prices fell.

Common mistakes

Revaluation is not ordinary depreciation or a selective one-asset write-up.
IncorrectCorrect
The company revalued only one machine from a larger class of identical machines. The company revalued the whole class of machinery.
Depreciation is the annual revaluation of an asset. Depreciation is the annual allocation of an asset's cost.
The revaluation surplus was recorded as normal sales revenue. The revaluation surplus was recorded in equity.

Similar words

Usage

Use revaluation when value is set again, then let the context show whether it is a general appraisal, a currency change, or an accounting adjustment.

Common mistakes

Devaluation lowers an official currency value, while revaluation raises it or reassesses value in another setting.

Etymology

Formed from re-, meaning again, and valuation. The noun is recorded from the 1610s for a second or repeated valuation.

FAQ

What does revaluation mean?

Revaluation is the act of setting or judging the value of something again.

Is revaluation the same as reevaluation?

Not exactly. Revaluation focuses on value or worth, while reevaluation can cover any kind of fresh review.

What is currency revaluation?

It is an official increase in a currency's value against other currencies, usually in a managed exchange-rate system.

How is revaluation different from devaluation?

Revaluation raises an official currency value, while devaluation lowers it.

What is asset revaluation in accounting?

It is an adjustment that updates an asset's carrying amount so it reflects fair value.

Can an accounting revaluation reduce an asset's value?

Yes. A revaluation model can lead to a lower carrying amount when fair value has fallen.

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