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Revaluation and impairment are terms closely related to one another, with subtledifferences. Revaluation and impairment both require the company to evaluate theassets for their true market value, and then take appropriate action in updating theaccounting books. The major difference between the two is that a revaluation can bemade upwards (to increase the value of the asset to market value) or downwards (todecrease the value). An impairment, on the other hand, only refers to one of the two; afall in the market value which is then written down.
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