A company may decide to revalue its assets which involves recording the assets at their fair market value rather than historical cost, and any increase in value is recorded as a revaluation surplus in equity. This revaluation affects the balance sheet by increasing the value of non-current assets and equity. While it does not directly impact profit or loss, it may positively impact a company's share price by appearing to be more valuable on the balance sheet.
A company may decide to revalue its assets which involves recording the assets at their fair market value rather than historical cost, and any increase in value is recorded as a revaluation surplus in equity. This revaluation affects the balance sheet by increasing the value of non-current assets and equity. While it does not directly impact profit or loss, it may positively impact a company's share price by appearing to be more valuable on the balance sheet.
A company may decide to revalue its assets which involves recording the assets at their fair market value rather than historical cost, and any increase in value is recorded as a revaluation surplus in equity. This revaluation affects the balance sheet by increasing the value of non-current assets and equity. While it does not directly impact profit or loss, it may positively impact a company's share price by appearing to be more valuable on the balance sheet.