Revaluation surplus

A revaluation surplus is an equity account in which is stored any upward changes in the value of capital assets. If a revalued asset is subsequently dispositioned out of a business, any remaining revaluation surplus is credited to the retained earnings account of the entity.

This surplus is only used when an organization creates its financial statements in conformance with International Financial Reporting Standards. No revaluation surplus is allowed for a firm that uses Generally Accepted Accounting Principles.