Due to the negotiations between the Professional Council of Economic Sciences of the Autonomous City of Buenos Aires and the General Inspection of Justice (IGJ *), the latter has issued General Resolution IGJ No. 9/16, allowing the use of Revaluation Model prepared by Technical Resolution No. 31 of the Argentina Federation of Professional Councils in Economic Sciences (FACPCE).

For the purposes of applying the model mentioned above, companies that have opted to apply the revaluation model for the measurement of assets (except biological assets) or net realizable value for investment properties and assets non-current held for sale must have the approval of the respective governing bodies (management or directory) and corporate governance (meeting of members or ordinary shareholders). Such approval will imply the existence of:

(A) Appropriate supporting documentation for the measurement.
(B) An accounting policy written and approved by the same board, describing the valuation technique adopted, in full accordance with current accounting standards.
(C) Mechanisms for monitoring and confirmation of the governing body of such accounting policy has been applied in the preparation of the financial statements.

Experts independent appraisers act as advisors to the board, who assumes the ultimate responsibility for the measurement.

Thus, the measuring mechanism does not affect the credibility of revaluations of assets, since as described is essential to establish a clear involvement of the corporate bodies of administration and government, as well as experts in the field of valuation.

Worth mentioning that within the framework of the new resolution, the companies have started procedures under the current rules of the previous IGJ (prohibiting the use of that model); they are entitled to request the withdrawal of such procedures and the breakdown of the documentation in order to benefit from the new provisions.

Thus, the acceptance of the application of the revaluation model by the PRC is a useful tool for small and medium enterprises (SMEs) by enabling them to reflect certain assets of its assets to fair values, providing, among other benefits, obtaining financing.

* Control Agency for joint stock companies and limited liability companies with a capìtal more or equal to $ 10,000,000.