The goal that has to be reached in revaluating company’s assets is to make periodic profit and loss which are determined through revenue and cost process can feasibly describe the company’s financial performance.
This condition can be met if the company’s assets including the fixed assets operated by the company are expressed and describe in their realistic values.
Replacement cost as a base of fixed asset revaluation is determined by considering the replacement cost of an old assets in the current condition, the replacement cost of the old assets in the new condition, and the accumulated depreciation of the old asset according to it’s replacement cost.
Keyword : Replacement Cost, Fixed Asset Revaluation,