Peru has been in the process of integrating IFRS / NIIFs standards since 2009.
Revaluations must be performed regularly and the frequency depends on changes in the assets’ fair values. The rules for these reassessments should follow the following topics:
- The revaluation should be performed by a specialized professional and duly registered with the corresponding professional body;
- All items from the same class must be reassessed;
- The value increase should be offered to taxation;
- The residual value and the amortization method should be reviewed at least annually.
It should be ensured that the companies do not have assets recorded for an amount higher than the recoverable value and if this occurs the asset loss due to devaluation must be recognized and this information must be disclosed.
The depreciation method used is ‘linear’ based on the official amortization and depreciation percentages. The companies may use differentiated rates, as long as supported by useful life official valuation reports.