IFRS 16 Leases

How to record ROU asset revaluation

Applying the revaluation model to a Right-of-Use asset.

Account NameTypeDebit ($)Credit ($)
ROU AssetAsset15,000.00-
Revaluation Surplus (OCI)Equity-15,000.00

💡 Accountant's Note

If a lessee applies the revaluation model in IAS 16 to a class of PPE, it may also apply that model to all ROU assets that relate to that class of underlying assets.

Practitioner & Systems Framework

💻 ERP Architecture

Utilize the asset revaluation functionality within the fixed asset module.

⚠️ Audit Flags

Consistency in applying the revaluation model across both owned and leased assets of the same class.

📄 Required Documentation

External appraisal report and updated revaluation policy document.

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QA

Expert Analysis by Qusai Ahmad

General Accountant Supervisor & IFRS Specialist

Specialized in SAP GUI automation and Middle Eastern tax compliance. Building digital tools for the next generation of finance leaders.

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