#SolanaSurge 1.2.1 The frequency of revaluations

The standard does not set a strict periodicity, but requires that the revaluation be sufficiently regular to ensure that the carrying amount does not diverge significantly from the fair value.

In practice:

Land may be revalued every 3 to 5 years,

Industrial buildings, every 2 to 3 years,

High volatility assets, sometimes annually.

The use of independent experts is often recommended to ensure the reliability of the amounts and the neutrality of the assessment.

1.3 The benefits of the revaluation model

The adoption of the revaluation model can be strategic for a company, due to the many financial, accounting, and economic benefits it provides.

1.3.1 The benefits of revaluation

1.3.1.1 Reflection of current value

Revaluation allows the carrying amount of fixed assets to be brought closer to their actual economic value, taking into account market fluctuations, inflation, or obsolescence.

1.3.1.2 Improvement of transparency

By valuing assets at their fair value, the company provides a more accurate picture of its financial position, which enhances the trust of investors and creditors.

1.3.1.3 Reduction of value discrepancies

The revaluation model helps limit accounting distortions that could skew financial analysis, particularly when an asset whose real value has increased remains recorded at a historically low cost.