is an accounting concept and represents a reassessment of the value of a capital asset as at a particular date. The reserve is considered a category of the equity of the entity. An asset is originally recorded in the accounts at its cost and depreciated periodically over its estimated useful life as a measure of the amount of the asset's value consumed in that period. In practicethe actual useful life of an asset can be miscalculated or an event can cause a change to the useful life. Consequentlyassets occasionally need to be revalued in order to reflect a more close approximation to their "worth" in the accounts. When the asset is revaluedthe offsetting entry (in a double entry accounting system) would be either made to the profit or loss accounts or to the equity of the entity.

This definition is in context to Accounting. See more contextual defintions for Asset Revaluation Reserve.