revaluation reserve account

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The reserve account to which the unrealized profit or loss on revaluation must be taken when the alternative accounting rules are used for the valuation of an asset. Companies have the option of choosing another name for this reserve if they wish. The revaluation reserve should be reduced to the extent that the amounts transferred to it are no longer necessary for the purpose of the valuation method used. The treatment for taxation purposes of any amounts credited or debited to the revaluation reserve must be disclosed in a note to the accounts.

Subjects: Accounting.

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