Valuation profit, valuation loss

Japanese: 評価益･評価損 - ひょうかえきひょうかそん（英語表記）valuation profit,valuation loss

This refers to the difference between the book value (book value) and the asset value that arises when a company revalues an asset it holds without selling or consuming it, and assigns a value to the asset that differs from its book value (or acquisition cost). When the new value assigned to the asset exceeds its book value, it is an unrealized gain, and when it falls short, it is an unrealized loss. Unrealized gains and losses arise while the asset is held due to accidental causes that occur inside or outside the company, such as changes in fashion, technological advances, and price fluctuations. Under the current historical cost accounting system (cost accounting), unrealized gains are only allowed to be recorded in special cases such as corporate reorganization and quasi-reorganization, but unrealized losses are widely allowed to be recorded due to the idea of conservatism (safety).

Source: Heibonsha World Encyclopedia, 2nd Edition Information

Japanese:

企業が保有中の資産を販売や消費することなく，評価替し，帳簿価額(または取得価額)と異なる価額を保有資産に付する場合に生ずる帳簿価額(簿価)との差額をいう。保有資産に新しく付された価額が簿価を超えた場合が評価益であり，不足した場合が評価損である。評価益･評価損は，資産の保有中に，流行の変化，技術進歩，価格変動など企業内外に生じた偶然的原因により発生する。現行の取得原価主義会計(原価主義)のもとでは，評価益は会社更生や準更生などの特殊な場合にのみ計上が認められるにすぎないが，評価損は保守主義(安全性)の考え方により広く計上が認められる。

出典　株式会社平凡社世界大百科事典第２版について　情報

<<: Ice age - Hyogajidai (English spelling)

>>: Sea Wanderers