The revaluation method is the term used for a method of capital consolidation in the context of a consolidated financial statement. Hidden reserves and financial obligations are at first listed as a difference between the time values and book values. In contrast to the book value method, these differences have to be stated not only proportionally to the holding interest, but also in their totality. The hidden reserves and financial obligation have an effect on the equity of the subsidiary company in their full amount; this is corrected by the sum of the individual differences indicated and thereby revaluated. Next, the holding company's interest is offset against the proportional equity of the subsidiary company. The resulting difference is listed as goodwill on the balance sheet, either as an asset or a liability.
The revaluation method is admissible according to the German Commercial Code and compulsory according to IFRS. As part of AMAL, the revaluation method will be the only admissible form of consolidation according to the German Commercial Code.