What does revaluation mean?
Revaluation means assessing or estimating something's value again, usually because circumstances have changed or an earlier assessment may no longer be reliable. The expression is especially common in finance, accounting, property, and business, where a revaluation may mean formally adjusting the recorded value of an asset, such as real estate, machinery, or investments. This adjustment can affect financial statements even though the asset itself has not physically changed. In less specialized contexts, revaluation can refer more broadly to reconsidering the importance, effectiveness, or value of a decision, policy, or arrangement. The word suggests an organized reassessment rather than an informal change of opinion. It is also related to revalue, the verb meaning to assign a new value to something. Because revaluation can carry financial implications and result in formally recorded changes, it often has a more exact and consequential tone than a simple reassessment.
nounThe act or process of assessing something again in order to revise its value, importance, or effectiveness. In finance, it refers specifically to changing the recorded value of an asset or liability.
- The process of reassessing something and revising its value, worth, or importance.
- The formal adjustment of the recorded value of an asset or liability, especially in accounting or finance.
"The bank's annual revaluation revealed that the property was worth considerably less than previously recorded."
"The committee ordered a revaluation of the project after its costs had risen sharply."
"Quarterly revaluation of the company's property assets increased reported profits."
The plural is used for separate occasions or instances of reassessing value, especially separate asset or liability revaluations.
"Two successive revaluations changed the reported value of the building."
A revaluation can transform the balance sheet overnight: a new appraisal changes the recorded worth of an asset without the asset itself changing.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Where does revaluation come from?
Revaluation was formed in the 19th century from the prefix re-, meaning “again,” and valuation, meaning “the act of assessing value.” Both elements ultimately connect with Latin valere, “to be worth,” also the source of words such as valor, valuate, and equivalent. The compound first developed in contexts of monetary and property assessment before broadening to other forms of reconsideration.
Related word forms
How revaluation is actually used
The term is most often used in financial and accounting contexts, especially for property, investments, and business assets. In general discussion, it can suggest a serious reconsideration of a decision, policy, or judgment. It is distinct from an actual change in market value: a revaluation may merely record a new assessment.