It is common for some business owners to revalue their assets to more accurately reflect their current value. This support note explains how this is done in AssetManager Pro.

1. Go to the Transactions command centre and click Asset Transactions. The AssetTransaction window appears.
   
   
   
   
   
2. Click the search icon  in the Asset ID field to select the asset you want.
   
3. Enter the revaluation date in the Date field.
   
4. Select Revalue Asset from the Type drop-down list. The Book and Tax details of the asset for this transaction type are displayed.
   
   
   
   
   
   
   
   As revaluations are only used for Book purposes, there is no Change to Tax details.
   
   
   
   If you want to revalue an asset for Tax purposes, you will need to complete an Adjustment transaction. There are guidelines as to when you can adjust a taxable value of an asset. Please refer to your accountant or the Australian Taxation Office for guidance. Our support note AssetManager Pro - adjustments may also be useful.
   
5. Enter any additional information to help you identify the specific purpose of the transaction in theNote field.
   
6. Enter the new value of the asset in the New Written Down Value field.
   
7. Click Journals if you want to preview the journals posted to this asset.
   
8. Click OK to revalue the asset. The new value is used to calculate depreciation from the date of the transaction. Any depreciation calculated on the old value is taken into account when calculating the revaluation adjustment.
   

What effect does revaluing an asset have on my depreciation calculations?

When revaluing an asset, AssetManager Pro will calculate depreciation at the old rate up to an including the date of revaluation.

Based on the accumulated depreciation and written down value as at the revaluation date, AssetManager Pro will then calculate the Revaluation Gain or Loss.

From the next day, AssetManager Pro will calculate depreciation on the revalued amount (assuming depreciation is calculated daily).

What journal entries are created?

As at the revaluation date, there will be two separate journals created.

The first journal  will be the year-to-date depreciation up until the date of revaluation. The accounts affected will usually be the Depreciation Expense and Accumulated Depreciation.

The second journal will record the amount of the change in written down value. The accounts affected will usually be Asset Revaluation Reserve and Asset Revaluation Gain (or Loss).

As there are a number of different ways to report on revalued assets, MYOB has chosen this method to highlight that a revaluation has occurred.

If you require different journals to be created, you are free to do so in your normal accounting system.