ASSET REVALUATION RESERVE Definition

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ASSET REVALUATION RESERVE is an accounting concept and represents a reassessment of the value of a capital asset as at a particular date. The reserve is considered a category of the equity of the entity. An asset is originally recorded in the accounts at its cost and depreciated periodically over its estimated useful life as a measure of the amount of the assets value consumed in that period. In practice, the actual useful life of an asset can be miscalculated or an event can cause a change to the useful life. Consequently, assets occasionally need to be revalued in order to reflect a more close approximation to their "worth" in the accounts. When the asset is revalued, the offsetting entry (in a double entry accounting system) would be either made to the profit or loss accounts or to the equity of the entity.

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RIGHTS, generally, is an entitlement to something, whether to concepts like justice and due process or to ownership of property or some interest in property, real or personal. In securities, it is a securities offering that gives the stockholder an option to purchase additional shares at a predeter­mined price. Frequently, the stock can be traded with the rights attached.

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