DEFINITION of 'Remeasurement'

The re-evaluation of the value of an asset or liability within a particular account on a company's financial statements. The purpose of this re-evaluation is to more accurately reflect the company's financial and operating position, even if the re-evaluation doesn't benefit the firm.

BREAKING DOWN 'Remeasurement'

Remeasurement is not a new concept, but it is becoming more and more common. The most common remeasurement takes place within a company's long-term assets section under the firm's balance sheet, most notably in the "land" account.

Land often appreciates with time, and a company must show this appreciation as an adjusting entry under an account named "modified historical cost", or "mixed measurement system."

  1. Balance Sheet

    A financial statement that summarizes a company's assets, liabilities ...
  2. Accounting

    The systematic and comprehensive recording of financial transactions ...
  3. Asset

    1. A resource with economic value that an individual, corporation ...
  4. Appreciation

    An increase in the value of an asset over time. The increase ...
  5. Long-Term Assets

    1. The value of a company's property, equipment and other capital ...
  6. Asset Valuation

    A method of assessing the worth of a company, real property, ...
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