The table is intended as a quick reference, but should not be a substitute for more in-depth research, particularly if a material issue is identified. Foreign depreciation and inventory issues are discussed at MATM 6020 and MATM 6075. This is most common with respect to investments, but also may occur for property, plant and equipment. In some cases, assets will be written-down when their market value falls below historical cost, and the unrealized losses will reduce net income. In other cases, the losses will be charged to a revaluation reserve until they are recognized.
Some countries also allow asset values to be written-up to reflect price increases.
The financial statements will usually disclose the current year and cumulative revaluation amounts. If depreciation or amortization was computed based upon the revalued amounts, those figures will often be disclosed as well. The property factor should reflect historical cost rather than revalued amounts. If material, adjustments to net income should be made to back out unrealized revaluation gains and losses. Corresponding adjustments may need to be made for depreciation or amortization expense.