#BinanceLeadsQ1 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 significantly diverge from the fair value.

In practice:

Land can be revalued every 3 to 5 years,

Industrial buildings, every 2 to 3 years,

Assets with high volatility, sometimes annually.

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

1.3 The benefits of the revaluation model

Adopting the revaluation model can be strategic for a company, due to the numerous financial, accounting, and economic benefits it provides.

1.3.1 The advantages of revaluation

1.3.1.1 Reflection of current value

Revaluation allows for aligning the carrying amount of fixed assets with 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 situation, which strengthens 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, especially when an asset whose real value has increased remains recorded at a historically low cost.