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Asset reassessment represents activities that estimate tangible and intangible assets owned by a certain enterprise to identify the fair value of the business’ asset in performing typical business activities or to carry out M&A or payment in kind etc.
IFRS(International Financial Reporting Standards) is an accounting standard, which is established and announced to increase international unity in the accounting process and financial statement of enterprises. This is a generally used accounting standard by the securities market and investors as the accounting standard deals with the finance reporting system, accounting, supervision law of the capital market, business activities etc. such as filling in financial statements, retrieval and transfer system, business performance index and decision-making.
Land, buildings, machinery & equipment, ships, airplanes, automobiles etc.
Goodwill, corporate value, intellectual property, utility model right etc.
Properties owned for rental profit or capital gain
Positive effects
Rise in total capital
Improvement in financial ratio driven by debt equity ratio (B/E)
Expansion of bonus issue of reassessment bargain by tax-free
Reinforcement of credit rating and decline in capital finance interest rate
Negative effect
Reduction in ROE and ROA
Classification Asset Reassessment IFRS
Legal base Asset reassessment law Based on company accounting
Scope of application Rise of value Rise and fall of value
Accounting on increased value from reassessment Capital surplus Other profit and loss
Repetition 1 time Periodical reassessment
Tax effect 1~3% of asset revaluation Tax Without tax burden
Group Contents
Land Appraisal of the entire land owned, not just part of the and
Building Appraisal of the entire building owned, not just part of the building
Equipment and machinery Appraisal of the entire machinery & equipment owned, not just part of machinery & equipment
Ship Appraisal of the entire ship owned
Airplane Appraisal of the entire airplane owned
※ Tangible assets owned by an enterprise, reassessment of a specific group is available, while reassessment of specific assets within a specific group is not available.