Verified on release 3.0.74.2 "Accounting for Kazakhstan" (edition 3.0).
The appraiser sent the report: the market value of your production machine is 4,500,000 ₸, while its residual value on the books is 3,000,000 ₸. Your accounting policy is the revaluation model under IFRS (IAS 16). This means the difference must be recorded in the accounts: revalue the asset upward and reflect the revaluation reserve in equity. There's no need to do this manually through an "Operation" — the "Revaluation of Non-Current Assets" document exists for this. It will itself take the current value and depreciation as of the date, recalculate them, and allocate them to the correct accounts.
1. Purpose
The document reflects the revaluation of fixed assets (FA) and intangible assets (IA) to fair value in accounting. It changes the initial cost and accumulated depreciation of the object and forms a revaluation reserve (upward revaluation) or an expense/reduction of the reserve (downward revaluation). After it, depreciation of future periods is calculated from the new value.
2. Where to find it
Section "FA and IA" → "Fixed Assets" block → "Revaluation of Non-Current Assets" (in some interfaces — "Revaluation of FA and IA"). The "Create" button opens a new document.
A quick way to open the list directly in 1C: "Tools" → "Navigate by link" (or Ctrl+Shift+N) and paste:
e1cib/list/Документ.ПереоценкаВнеоборотныхАктивов
2a. How to find out your release
"Help" → "About the program" (or the "i" icon in the top right corner). In the window that opens, you will see the platform version (for example, 8.3.24) and the configuration release — a line like "Accounting for Kazakhstan, edition 3.0 (3.0.74.2)". Compare it with the header of this guide: the placement of fields may vary slightly between releases.
3. How to fill it in
Header
| Field | Why it matters and what happens if you get it wrong |
|---|---|
| Organization (required) | Which company the revaluation is carried out for. If there is only one organization in the database — it will be filled in automatically. Make a mistake — the entries will go to the wrong company, and the balance sheet won't reconcile. |
| Date (required) | The moment for which the value and depreciation are taken. Set it to the end of the period (usually December 31 or the end of the month). A date earlier than the acceptance of the FA for accounting — the document won't find the object. A date in a closed period — it won't be posted. |
| Number | Assigned automatically upon saving. Do not touch it manually. |
| FA event | Reflected in the object's card as a "Revaluation" fact. Affects only the event history, not the entries. |
| Revaluation method | "Proportional recalculation" (value and depreciation change in the same proportion) or "Write-off of accumulated depreciation". By default — proportional; it is correct for most cases. |
Tabular section
There are separate tabs/tables "Fixed Assets" and "Intangible Assets". Add only those objects that you are actually revaluing — the law does not require revaluing an entire class in full, but within one class the approach must be uniform.
The most convenient way is to click "Fill" → "Fill by balances" (or select through "Selection"): the program will pull up the objects and their current amounts as of the document date.
| Column | Why it matters and what happens if you get it wrong |
|---|---|
| Fixed asset / IA (required) | The specific inventory object. |
| Value (current) | The initial (replacement) value as of the date. Filled in automatically. If empty — the object has not been accepted for accounting or the date is incorrect. |
| New value (required) | The target initial value after revaluation. Enter it or set it via a coefficient/new carrying amount — the rest will be calculated. Get the figure wrong — you'll get an incorrect reserve and the income tax will be off. |
| Depreciation (current) | Accumulated depreciation as of the date. Filled in automatically. |
| New depreciation | With the proportional method it is calculated automatically (by the coefficient). With the write-off method — it is reset to zero. |
| Upward/downward revaluation of value and …of depreciation | The differences "new minus old". Their sum gives the net result of the revaluation. Check: net upward revaluation = upward revaluation of value − upward revaluation of depreciation. |
| Revaluation reserve account | By default 5420 (FA) / 5430 (IA). The upward revaluation goes here. |
| Expense account | For the portion of the downward revaluation that exceeds the previously accumulated reserve — 7420 (other expenses). |
After filling in, check the total in the net upward/downward revaluation column and post the document.
4. A worked example with entries
Situation. LLP "Astana Prom" has a machine:
- initial cost — 5,000,000 ₸;
- accumulated depreciation — 2,000,000 ₸;
- carrying (residual) value — 3,000,000 ₸.
The appraiser determined the fair value of the machine to be 4,500,000 ₸. Method — proportional recalculation.
Calculation. Coefficient = 4,500,000 ÷ 3,000,000 = 1.5.
| Indicator | Before | After | Upward revaluation |
|---|---|---|---|
| Initial cost | 5,000,000 | 7,500,000 | 2,500,000 |
| Accumulated depreciation | 2,000,000 | 3,000,000 | 1,000,000 |
| Carrying value | 3,000,000 | 4,500,000 | 1,500,000 |
Entries upon posting (accounting):
| Dr | Cr | Amount, ₸ | Description |
|---|---|---|---|
| 2410 | 5420 | 2,500,000 | Upward revaluation of the machine's initial cost |
| 5420 | 2420 | 1,000,000 | Upward revaluation of accumulated depreciation |
The balance on account 5420 after posting is 1,500,000 ₸ on the credit side (revaluation reserve in equity). Exactly the amount of the increase in carrying value.
And what if it were a downward revaluation? Suppose the fair value turned out to be 2,400,000 ₸ (below the carrying value of 3,000,000 ₸), and there was previously no reserve for this object. Then the downward revaluation of 600,000 ₸ goes to expense:
| Dr | Cr | Amount, ₸ | Description |
|---|---|---|---|
| 7420 | 2410 | 600,000 | Downward revaluation charged to other expenses |
If a revaluation reserve had previously been accumulated for the object, the downward revaluation would first offset it (Dr 5420), and only the remainder would go to Dr 7420.
Important about taxes. In tax accounting for CIT, fixed assets are accounted for in the value balances of fixed asset groups, and revaluation does not affect them — the tax value does not change. A temporary difference arises between accounting and tax records (deferred tax is calculated on it). VAT is not charged on revaluation: there is no sale.
5. Types of operation
There is one document, but essentially it covers several scenarios:
- Upward revaluation of FA — value increased, reserve 5420 is formed.
- Downward revaluation of FA — value fell: the previously accumulated reserve 5420 is offset, the remainder goes to expense 7420.
- Upward / downward revaluation of IA — similarly, but the reserve is on account 5430.
- Proportional recalculation — value and depreciation change in the same proportion (carrying value = fair value).
- Write-off of accumulated depreciation — depreciation is written off against the initial cost, the object is "reset to zero" and transferred to fair value.
6. What is formed upon posting
Accounting entries — on accounts 2410/2420 (FA) or 2730/2740 (IA), 5420/5430 (reserve), 7420 (expense on downward revaluation).
Movements in the FA and IA accounting registers — the value and accumulated depreciation of the object are updated, so that further depreciation is calculated from the new base. The "Revaluation" event is registered in the object's history.
No electronic documents are formed. Revaluation is an internal operation without a sale, so an ESF (IS ESF) and SNT are not issued for it. If you need an ESF — you have confused the document: it is not about selling the asset.
Tax accounting for CIT is not affected by the document (the value balances of the groups do not change).
7. Printed forms
Under the "Print" button the following are available:
- Fixed assets revaluation statement — a list of objects with the old and new value, depreciation and result.
- Accounting reference-calculation — a breakdown of entries and amounts of upward/downward revaluation.
The statement is filed together with the appraiser's report and the revaluation order — this is the primary justification for the operation.
8. Common mistakes
"Organization not filled in" — fill in the field in the header; with several organizations, select the required one manually.
"For the fixed asset … no value / depreciation balances found as of the document date" — the object has not yet been accepted for accounting on this date or the date is earlier than commissioning. Check the document date and the FA status; press "Fill by balances" again.
"The document cannot be posted: the period is closed" — an editing restriction date is set. Move the document to an open period or lift the restriction (section "Administration" → "Change restriction dates").
The upward revaluation went to the wrong place — you manually set the expense account instead of 5420. For an upward revaluation there must be a reserve 5420/5430; account 7420 is used only for a downward revaluation in excess of the reserve.
After revaluation, depreciation is "frozen" at the old amount — check that the document is posted with a date preceding the nearest "Month-end closing"; depreciation from the new value will start from the next calculation month.
The balance is off by a few tiyn — with proportional recalculation there can be rounding. Check the columns of upward revaluation of value and depreciation: their difference must equal the increase in carrying value.
9. FAQ
Does revaluation affect tax accounting for CIT? No. Fixed assets in tax accounting live in the value balances of groups, and revaluation does not change them. A temporary difference arises, on which deferred tax is calculated, but the tax value of the asset remains the same.
Is an ESF or SNT formed? No. There is no sale, VAT is not charged, electronic documents are not issued.
On which account is the revaluation reserve formed? 5420 "Reserve for revaluation of fixed assets" for FA and 5430 "Reserve for revaluation of intangible assets" for IA.
How is a downward revaluation reflected? First it reduces the reserve previously accumulated for this object (Dr 5420/5430). If there is no reserve or it is insufficient, the remainder is charged to expense — Dr 7420.
Does depreciation change after revaluation? Yes. From the month following the revaluation, depreciation is charged from the new (revalued) value and the remaining useful life.
Can you revalue only one object rather than the whole group? Technically yes — you add only the required rows to the table. But under IFRS you must revalue the entire class of homogeneous assets, so as not to mix cost and fair value.
How often should revaluation be carried out? According to the accounting policy. Often enough that the carrying value does not differ much from fair value — usually once a year at the end of the reporting period.
What to do with the revaluation reserve when the object is disposed of? When a revalued FA is written off or sold, the accumulated reserve is transferred to retained earnings with the entry Dr 5420 Cr 5510 (5610). This is not done through this document itself — the transfer is made upon disposal of the asset.
Which method to choose — proportional or write-off of depreciation? Proportional recalculation is more convenient and suits most cases: the "value/depreciation" structure is preserved. The depreciation write-off method is used when revaluing an already heavily depreciated object up to market value.
Is upward revaluation subject to VAT? No. Revaluation is an internal accounting operation, no object of VAT taxation arises.
10. Related documents
- Before / prior to revaluation: "Acceptance of FA for accounting", "Entry of opening balances" (FA and IA), "Month-end closing" (accrual of depreciation up to the revaluation date).
- After revaluation: "Month-end closing" (depreciation already from the new value), "Write-off of FA" or "Transfer of FA" (upon disposal the reserve 5420/5430 is transferred).
- Justification: the independent appraiser's report and the manager's order on revaluation — attached to the document.
How to find out your release: "Help" → "About the program" — there you can see the 1C:Enterprise platform version and the configuration release.
This guide is prepared for "Accounting for Kazakhstan", edition 3.0, release 3.0.74.2. On other releases the names of tabs and columns may differ slightly.