French Commercial code
In forceOn the date of their entry into the company's assets, goods acquired for valuable consideration are recorded at their acquisition cost, goods acquired free of charge at their market value and goods produced at their production cost.
For fixed assets, the values used in the inventory must, where applicable, take account of depreciation schedules. If the value of an asset falls below its net book value, the latter is reduced to the inventory value at the end of the financial year, whether or not the depreciation is definitive.
Fungible assets are valued either at their weighted average acquisition or production cost, or on the basis that the first asset taken out is the first asset taken in.
Any increase in value between the inventory value of an asset and its acquisition value is not recognised. If all tangible and financial fixed assets are revalued, the revaluation difference between the current value and the net book value cannot be used to offset losses; it is entered separately as a liability on the balance sheet.
