Fixed Asset Valuation — IVS Methods and Standards 2025

Fixed asset revaluation is an accounting and tax operation with direct impact on the balance sheet, tax base, and the company's borrowing capacity. Valuation must be performed by ANEVAR-authorized valuers, in accordance with International Valuation Standards (IVS). Geseidl Valuations, with ANEVAR valuers on the team, presents the complete guide.

Why assets are revalued — accounting and tax reasons

The main reasons for fixed asset revaluation are multiple. From an accounting perspective, assets recorded at historical cost may have a significantly different market value after several years, distorting the true and fair view of assets — an obligation under Accounting Law 82/1991.

• Reflecting real value — old assets at historical cost undervalue the patrimony
• Tax optimization — upward revaluation increases tax-deductible depreciation
• Access to financing — banks require updated values for collateral
• Mergers and acquisitions — due diligence requires market values
• IFRS reporting — listed companies must report at fair value

Valuation methods according to IVS standards

International Valuation Standards (IVS 2025) recognize three fundamental approaches, each with specific methods:

Market approach

Based on comparison with recent transactions of similar assets. Most reliable when an active market exists (real estate, vehicles, standard equipment). Adjustments are applied for differences in location, condition, and size.

Income approach

Based on capitalizing or discounting income streams generated by the asset. Used for income-generating assets: rented properties, patents, trademarks, businesses. The DCF (Discounted Cash Flow) method is the most commonly used.

Cost approach

Based on the replacement or reproduction cost of the asset, adjusted for accumulated depreciation (physical, functional, economic). Used for specialized assets without an active market: specific industrial equipment, special-purpose buildings.

Accounting revaluation — balance sheet impact

Under OMFP 1802/2014, revaluation of tangible fixed assets is optional but once applied must be performed regularly. Balance sheet impact:

• Upward revaluation (fair value > book value): increase in revaluation reserve (equity)
• Downward revaluation (fair value < book value): reduction from existing revaluation reserve or expense
• Tax impact: revaluation reserve becomes taxable upon asset disposal or reserve utilization
• Depreciation: recalculated based on revalued amount and remaining useful life

When revaluation is mandatory (mergers, listing, credit)

Although revaluation is in principle optional, there are situations where it becomes practically mandatory:

1. Mergers and spin-offs — Law 31/1990 requires asset valuation at fair value
2. Stock exchange listing — BVB and IFRS require fair value reporting
3. Mortgage loan application — banks require ANEVAR valuation for real estate collateral
4. In-kind contribution — valuation is mandatory for asset contributions to share capital
5. Insolvency — inventory and valuation of assets are mandatory

The valuation process — steps and required documents

A complete ANEVAR valuation report follows these steps: defining the valuation engagement, data collection, asset inspection, market analysis, application of valuation methods, reconciliation of results, and report drafting.

Documents required from the owner: property deeds, cadastral documentation, fixed asset inventory sheets, recent financial statements, lease contracts (if any), authorizations and permits. The Geseidl accounting department facilitates documentation preparation for valuation.

Need asset and business valuation services? The Geseidl Consulting Group team, CECCAR Prahova leader for 18 consecutive years, is ready to help. Discover our services or contact us for a free consultation.