Revaluation
In one sentenceMeasuring a fixed asset at its fair value on the valuation date instead of historical cost, if the business chooses the revaluation model as an accounting policy.
Simply put
The standards allow two models for fixed assets: the cost model (cost less depreciation), or the revaluation model (fair value less subsequent depreciation). If you choose it, apply it to the whole class and repeat the valuation regularly.
The increase is usually recorded in other comprehensive income and accumulates as a surplus in equity, not in net profit.
Worked example
A company owns land that cost 800,000 SAR, and a certified valuer appraised it at year end at 1,100,000 SAR.
Fair value1,100,000
Carrying amount800,000
Dr Land300,000
Cr Revaluation surplus300,000
Revaluation surplus = 1,100,000 − 800,000300,000 SAR
Don't confuse it with
Impairment of assetsImpairment applies under both models when value declines, while revaluation is an option that reflects fair value both up and down.