Final answer:
Revaluation accounting involves reassessing the fair value of fixed assets, with initial revaluation down and subsequent revaluation down being possible.
Step-by-step explanation:
Revaluation Accounting
Revaluation accounting is a method used to adjust the value of fixed assets on a company's balance sheet. It involves periodically reassessing the fair value of these assets and making appropriate changes to their recorded values.
Initial Revaluation Down
In the context of revaluation accounting, an initial revaluation down occurs when the fair value of an asset decreases. This often happens when the market value of the asset declines or when there are indications of impairment.
Subsequent Revaluation Down
A subsequent revaluation down refers to any further decreases in the fair value of an asset after the initial revaluation down. This can occur in subsequent accounting periods if there are further declines in the market value or indicators of impairment.
So, the statement that there is an initial revaluation down and subsequent revaluation down in revaluation accounting is true.