The Revaluation of Fixed Assets under the Algerian Financial Accounting System: Accounting Treatment, Tax Implications, and Implementation Challenges

Abstract

This study aims to analyse the revaluation model of fixed assets under the Algerian Financial Accounting System by examining its theoretical foundations, accounting treatment, tax implications, and implementation challenges. the importance of this study lies in the fact that the revaluation represents an alternative to the historical cost model, as it seeks to enhance the relevance of financial information by reflecting more representative asset values. The study adopts a descriptive and analytical approach based on the Algerian Financial Accounting System, Algerian tax legislation, IFRS Accounting Standards, and accounting literature. The findings indicate that the revaluation model improves the relevance of financial reporting by providing more representative information about assets and an entity's financial position. However, its implementation in Algeria remains constrained by fair value measurement difficulties, limited market information, deferred tax complexities, and reliance on professional judgement. The study recommends strengthening valuation practices and developing reliable market databases to support more objective valuation processes.