The issue of revaluation of fixed assets

Keywords: revaluation of fixed assets; fair price; indexation system; forensic financial and economic analysis; international financial reporting standards


Modern concepts of accounting development relate to the evolution of the preparation and processing of accounting and analytical information generated within the accounting system of organization. Each economic entity predominantly uses information presented in financial reports involving the value of the enterprise’s assets, including information on fixed assets as documentary evidence of its reliability in investment relations to attract potential investors and partners as well as to receive credit financing.

Since fixed assets are an essential component of all assets, improving the efficiency of their use through a qualitative estimation of their value can be considered one of the leading areas of improving accounting of enterprises. However, the real value of certain units of fixed assets can change drastically, which necessitates an annual revaluation. Given possible issues in practical application of international financial reporting standards, introduction of indexation system for self-calculation of coefficients of rapid revaluation of fixed assets (tangible non-financial assets) of the organization is highly important. Certainly, this method requires a professional approach, starting with acquisition, construction or creation of fixed assets.

In this context, this Article Purpose is to substantiate the need to implement an indexation system for each unit (group) of fixed assets of organization, which are subject to interim revaluation in the future, from the very moment of their acquisition.


Bezverkhyi, K. (2016). Osoblyvosti pereotsinky osnovnykh zasobiv: mizhnarodnyi ta ukrainskyi dosvid [Peculiarities of fixed assets revaluation: international and Ukrainian experience]. Bukhhalterskyi oblik i audyt. № 1 [in Ukrainian].
Chalyi, I. (2015). Otsenka osnovnykh sredstv: dve modeli, dva obraza otchetnosti [Estimation of fixed assets: two models, two types of reporting]. Vestnik MSFO. № 26. URL: https://msfz.ligazakon. ua/magazine/900088 [in Russian].
Cheikh Rouhou, N., Ben Mrad Douagi, F. W., Hussainey, K., Alqatan, A. (2021). The impact of IFRS mandatory adoption on KPIs disclosure quality. Risk Governance and Control: Financial Markets & Institutions. Vol. 11. Is. 3. DOI: 10.22495/rgcv11i3p4.
Gonin, V. N., Panchenko, E. Iu., Kibireva, E. B., Nomokonova, O. A. (2021). Podkhody k otsenke i pereotsenke osnovnykh sredstv po rossiiskim i mezhdunarodnym standartam [Approaches to valuation and revaluation of fixed assets according to Russian and international standards]. Vestnik ZaBGU. T. 27. № 3. DOI: 10.21 209/2227-9245-2021-27-3-87-98 [in Russian].
Goodwin, J., Ahmed, K., Heaney, R. (2008). The effects of international financial reporting standards on the accounts and accounting quality of Australian firms: A retrospective study. Journal of Contemporary Accounting & Economics. Vol. 4. Is. 2. DOI: 10.1016/S1815-5669(10)70031-X.
Hohol, T. (2012). Kontseptsiia spravedlyvoi vartosti v bukhhalterskomu obliku: naslidky dlia pidpryiemstv moloho biznesu [The concept of fair value in accounting: consequences for small business enterprises]. Bukhhalterskyi oblik i audyt. № 6 [in Ukrainian].
Ivashchenko, I. M. (2015). Vyznachennia spravedlyvoi vartosti pry perevirtsi neoborotnykh aktyviv na zmenshennia korysnosti [Determining fair value when testing non-current assets for value impairment]. Naukovyi visnyk Khersonskoho derzhavnoho universytetu. Vyp. 13 (3). URL: http:// pdf [in Ukrainian].
Khorolskaia, T. E., Eremina, N. V., Gulin, V. S. (2021). Osobennosti otsenki i pereotsenki obieektov osnovnykh sredstv [Peculiarities of valuation and revaluation of fixed assets]. Estestvennogumanitarnye issledovaniia. № 36 (4). DOI: 10.24412/2309-4788-2021-11320 [in Russian].
Leonova, O. I. (2015). Pereotsenka osnovnykh sredstv v bukhgalterskom uchete i ee vliianie na dannye nalogovogo ucheta [Revaluation of fixed assets in accounting and its impact on tax accounting data]. Audit i finansovyi analiz. № 1. URL: https:// pdf [in Russian].
Lueg, R., Punda, P., Burkert, M. (2014). Does transition to IFRS substantially affect key financial ratios in shareholder-oriented common law regimes? Evidence from the UK. Advances in Accounting. Vol. 30. Is. 1. DOI: 10.1016/j.adiac.2014.03.002.
Slutskyi, Ye. V. (2017). Rozrobka alhorytmu otsinky za spravedlyvoiu vartistiu nefinansovykh aktyviv pry pervynnii stadii zhyttievoho tsyklu osnovnykhzasobiv[Developmentofanalgorithm for measuring fair value of non-financial assets at the initial stage of the life cycle of fixed assets]. Prychonomorski ekonomichni studii. Vyp. 17. URL: [in Ukrainian].
Solikhah, В., Akuntansi, F. E, Hastuti, Sri, Asrori, Budiyono, I. (2020). Fixed Assets Revaluation to Increase Value Relevance of Financial Statements. Journal of critical reviews. Vol. 7. Is. 5. URL:
Stent, W., Bradbury, M., Hooks, J. (2010). IFRS in New Zealand: Effects on financial statements and ratios. Pacific Accounting Review. Vol. 22. No. 2. DOI: 10.1108/01140581011074494.
Voulgaris, G., Stathopoulos, K., Walker, M. (2014). IFRS and the use of accounting-based performance measures in executive pay. The International Journal of Accounting. Vol. 49. Is. 4. DOI: 10.1016/j.intacc.2014.10.001.

Abstract views: 19
PDF Downloads: 9 PDF Downloads: 8
How to Cite
Mamikonyan, K. (2021). The issue of revaluation of fixed assets. Theory and Practice of Forensic Science and Criminalistics, 25(3), 81-98.