Current value
Current value is a legally permitted valuation basis that follows the value at the valuation date under the applicable rules.
What does current value mean?
Current value is a legally permitted valuation basis that follows the value at the valuation date under the applicable rules.
The precise application depends on the asset category and the Current Value Decree (Besluit actuele waarde). A positive revaluation can bring a revaluation reserve and deferred tax with it.
How does it work?
Article 2:384(1) DCC allows two bases: acquisition or production cost and current value. The Current Value Decree fills in the second with four concepts: current cost, value in use, market value and realisable value (art. 1(2)). Which applies depends on the asset. Tangible fixed assets for own use are valued at current cost, or at the lower value in use or realisable value (art. 7). Investment property and financial instruments are valued at market value (art. 10 and 11).
An increase in value of business premises or a machine in own use does not run through profit; for investment property at fair value it does, with a revaluation reserve alongside (RJk B2.206). It goes to a revaluation reserve (art. 2:390(1) DCC), a statutory reserve from which no dividend may be paid. That reserve may be reduced by the deferred tax on the revaluation. Intangible fixed assets may be valued at current value only if there is a liquid market for them (art. 6 of the decree). A micro entity may not value at market value (art. 5a).
Example
A BV bought business premises at the start of 2016 for € 400.000: land € 100.000, building € 300.000, depreciation 2,5% a year. At the end of 2025, 10 × € 7.500 = € 75.000 has been depreciated on the building; the book value is € 325.000. A valuer sets the current cost in the present condition at € 420.000. The upward revaluation is € 95.000. If the BV accounts for deferred tax at 25,8%, it books: business premises € 95.000 debit, deferred tax liability € 24.510 credit and revaluation reserve € 70.490 credit.
In the annual accounts
Balance sheet and notes; the movement may affect equity.
Difference from market value
Market value is one of the four forms of current value: the amount for which an asset can be traded between well-informed, independent parties (art. 4 Current Value Decree). For a machine the business keeps using, the measure is current cost: the present purchase price including incidental costs, less depreciation.
Common mistakes
- Estimating current value without support
- Distributing the revaluation in full
What to look out for
- If you choose current value for one property, that applies to the whole category it belongs to, and you revalue often enough to keep the book value up to date (RJ 212).
- State in the notes how the current cost, value in use or realisable value was determined (art. 9 of the decree) and whether you account for taxes (art. 2:390(5) DCC).
- For the size class the revaluation does not count: the law tests the assets on the basis of acquisition and production cost (art. 2:396(1)(a) DCC).
Legal basis and source
art. 2:384 and 2:390 DCC; Current Value Decree (Besluit actuele waarde)
Frequently asked questions
May a small BV put its premises at current value?
Yes. The choice between cost and current value is open to every size class. Only the micro entity may not value at market value (article 5a Current Value Decree).
Can the revaluation reserve be paid out as a dividend?
No, not as long as the asset is on the balance sheet. It is a statutory reserve. On sale of the asset the reserve is reduced by the amount recognised for that asset (article 2:390(3) DCC).
What happens if the value falls again afterwards?
The decrease is charged to the revaluation reserve to the extent the asset was previously revalued upwards in favour of that reserve (article 2:390(3) DCC). Only the excess is charged to the result.
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Preparing Dutch annual accounts?
Your first set of annual accounts is free, for every size class. Create an account and prepare the annual accounts of your Dutch company under Title 9 of Book 2 of the Dutch Civil Code.
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