Uruguay has been in the process of integrating IFRS / NIIFs standards since 2008.
Revaluations must be performed regularly and frequency depends on changes in the assets’ fair values. The rules for these evaluations 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 a same class must be reassessed;
- The increase in value 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 company should review the depreciation applied at least at the end of each year and, if there is a significant change in the expected pattern of consumption of the future economic benefits incorporated in the asset, it should be modified to reflect the new pattern. This change will be accounted for as a change in an accounting estimate, in accordance with IAS 8.