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The standard says , Quote
“The items within a class of property, plant and equipment are revalued
simultaneously to avoid selective revaluation of assets and the reporting of
amounts in the financial statements that are a mixture of costs and values as
at different dates. However, a class of assets may be revalued on a ROLLING BASIS
provided revaluation of the class of assets is completed within a short period
and provided the revaluations are kept up to date.”What does rolling basis mean?
In general “rolling basis” means continuous basis (so a “rolling budget” in PM is one which is kept up to date by adding a new month as every month elapses).
So this is a practical expedient in IAS 16 – that not all assets have to be revalued on the same date – or even the same month. The overriding requirement is that revaluations should be kept up-to-date – which can be achieved by having a programme for revaluing assets at different locations over a period of time.
In general “rolling basis” means continuous basis (so a “rolling budget” in PM is one which is kept up to date by adding a new month as every month elapses).
So this is a practical expedient in IAS 16 – that not all assets have to be revalued on the same date – or even the same month. The overriding requirement is that revaluations should be kept up-to-date – which can be achieved by having a programme for revaluing assets at different locations over a period of time.
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