Another important issue related to the write-down of fixed assets, which necessarily have to be consulted before analyzing the indicators of an impairment, is the revaluation of fixed assets.

The valuation of the assets' including consideration of the possible loss of their value, in fact precedes the evaluation of the role that the assets over which the
individual has control, will meet in its activities in the future.

Complicated? Not necessarily! The point, however, is to determine which assets are used for operating activities, which held as investments.

After this assignment - according to the adopted accounting policy ? an entity should determine the level of measurement of the carrying amount of each asset.

Main page Other posts