Revaluing Meaning: Definition, Examples, and Translations
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revaluing
[rɪˈvæljuːɪŋ ]
Definition
financial assessment
Revaluing refers to the process of reassessing the value of an asset or liability, often to reflect current market conditions or changes in the underlying economic indicators. This process is important for financial reporting and helps stakeholders understand the true value of a company's assets. Revaluing can also impact balance sheets and taxes. The practice is common in businesses that own significant tangible or intangible assets, and it must be conducted according to specific accounting standards.
Synonyms
reappraising, reassessing, reassessing value.
Examples of usage
- The company is revaluing its property assets.
- Revaluing investments is crucial during market fluctuations.
- After the audit, they decided to start revaluing their inventory.
- The organization is revaluing its financial statements.
Translations
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Interesting Facts
Economics
- Governments may revalue their currency to make exports cheaper or imports more expensive, influencing trade.
- Inflation can lead to the need for revaluing assets, as the purchasing power of money decreases over time.
- Revaluing can be important for businesses, as it helps them understand their market position and make better financial decisions.
Cultural Perspectives
- In some cultures, revaluing objects is significant. For instance, vintage items or art can appreciate in value as their cultural importance grows.
- Communities often undergo a process of revaluing traditions and practices, recognizing their contemporary relevance.
Psychology
- A psychological concept akin to revaluing is 'cognitive reframing', where a person changes their perception of an experience to alter its emotional impact.
- In therapy, clients may be guided to revalue their self-worth as they confront negative self-beliefs.
Finance
- Revaluing assets in finance is crucial, as it allows businesses and investors to have a current understanding of their worth.
- The revaluation of investments can signal when it's the right time to buy, hold, or sell in market trading.
Origin of 'revaluing'
Main points about word origin
- The term 'revalue' comes from the prefix 're-' meaning 'again' and 'value', which means the importance or worth of something.
- In economic contexts, the word has been used since the early 20th century, especially regarding currency.
The term 'revaluing' is derived from the prefix 're-' meaning 'again', and 'value', which originates from the Latin word 'valere', meaning 'to be strong' or 'to be worth'. This concept has evolved through the centuries, especially as financial markets and economies became more complex. In accounting and finance, the notion of value is paramount as it influences investment decisions and economic theories. Revaluation gained prominence with the rise of modern accounting practices in the 20th century, particularly as businesses began to recognize the importance of accurate asset valuation for financial transparency and shareholder confidence. Today, revaluing is not only crucial for financial institutions but is also a significant aspect of corporate governance and regulatory compliance.