Table 8.14 Account III.3.2: Revaluation account

8.54 The revaluation account records changes in the value of assets and liabilities due to changes in their prices.

For a given asset or liability, this change is measured as:

1. either the difference between its value at the end of the accounting period and its value at the start of the accounting period or the date on which it was first entered in the balance sheet;
2. or the difference between its value at the date on which it was written out of the balance sheet and its value at the start of the accounting period or the date on which it was first entered in the balance sheet.

This difference is called 'nominal holding gain (or loss)'.

A nominal holding gain corresponds to the positive revaluation of an asset or the negative revaluation of a (financial) liability.

A nominal holding loss corresponds to the negative revaluation of an asset or the positive revaluation of a (financial) liability.

8.55 The flows recorded in the revaluation account change the net worth of the balance sheets of the units concerned. This change, called 'change in net worth due to nominal holding gains and losses', is the balancing item in the account. It is recorded on the changes in liabilities and net worth side.

8.56 The revaluation account is broken down into two sub-accounts: the neutral holding gains and losses account (III.3.2.) and the real holding gains and losses account (III.3.2.).