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. Investopedia Says:
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." Related Terms:
Accounting
Appreciation
Asset
Asset Valuation
Balance Sheet
Long-Term Assets |