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What will be the effect of a revaluation of tangible assets on working capital?

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Question added by Nadjib RABAHI , Freelancer , My own account
Date Posted: 2017/04/12
Syed Mujeeb Ahmed Jafri
by Syed Mujeeb Ahmed Jafri , Accountant , Select Group - Real Estate Group

Revaluation should not any effect on working capital.

Ali Hassan Mohammed Saleh
by Ali Hassan Mohammed Saleh , Financial Manager , Jumaan Exchange

Revaluation of fixed assets, will affect the fixed assets and profit period and equity, and therefore will not affect the working capital

Amar Eisa Elhaj Ibrahim Elshaier
by Amar Eisa Elhaj Ibrahim Elshaier , محاسب عام , مصنع خالد سليمان النقير للخرسانة الجاهزة والبلك

If there is an unrealized gains from the processing of valuation of tangible assets this lead to an increase in working capital, this in turn leads to the maintenance of capital by recognizing the amount at fair value, and retaining the surplus as considering that represents an increasing in the value of assets instead of treating the excess amounts as operating profits.

ABUBAKR OMER MOHAMED
by ABUBAKR OMER MOHAMED , رئيس الامتثال , بنك فيصل الاسلامي

The impact will be negative and reduce working capital efficiency

Gratefully

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