Overview
Historical cost accounting and mark-to-market, or fair value accounting are two methods used to record the price or value of an asset.
- Historical cost measures the value of the original cost of an asset, whereas
- Mark-to-market (or fair value) measures the current market value of the asset.
Simple Invest 360 supports both methods, and this article details how to switch between methods.
Switching from Mark-to-Market to Historical Cost
From the Main Toolbar, hover the cursor over the Entity icon. This may be Company/Trust/Individual. | ![]() |
From the side menu, select (Entity) Details. | ![]() |
1. From within the (Entity) Details screen, scroll down to the Reporting category, then locate the Automatic Revaluations toggle. Switch to No.
Automatic revaluations will be turned off starting tomorrow.
2. You may need to delete system journals for automatic revaluations already posted across the financial years where the assets are to be recorded at historical cost.
From the Main Toolbar, hover the cursor over the Accounting icon. | ![]() |
From the side menu, select Transaction List. | ![]() |
3. From the right-hand filters, adjust the dates and tick the check box for System Journals:
4. Delete the relevant system revaluation journals. For example:
Once all the relevant revaluation journals are deleted, the assets will be reported at cost across all reports generated in Simple Invest 360, (e.g. Balance Sheet).
Switching from Historical Cost to Mark-to-Market
From the Main Toolbar, hover the cursor over the Entity icon. This may be Company/Trust/Individual. | ![]() |
From the side menu, select (Entity) Details. | ![]() |
1. From within the (Entity) Details screen, scroll down to the Reporting category, then locate the Automatic Revaluations toggle. Switch to Yes.
Automatic revaluations will be turned on starting tomorrow.
2. You may need to adjust your investment accounts up (or down) to their recorded market value as at 30/06/XXXX (Market Value less Original Cost Price).
Note: The manual revaluation of investments is only required for those investments already recorded at cost. This is a once-off process. Investments will be automatically revalued daily moving forward.
From the Main Toolbar, hover the cursor over the Accounting icon. | ![]() |
From the side menu, select Transaction List. | ![]() |
3. Select New Transaction | Journal.
4. Record the transaction.
Date | Input 30/06/XXXX (the market value as at year-end). |
Reference | Input a reference number. |
Description | Revaluation on Investments |
Select an account | Select the Investment Account |
Units - Do not enter any units as this will prompt Simple Invest 360 to treat this transaction as a revaluation | |
Amount | Input a debit amount (to revalue upwards) or credit amount (to revalue downwards) |
Select an account | Input the balancing entry to 24700 - Changes to Market Values of Investments |
5. Save the transactions by selecting Post.
Investments will be automatically revalued daily moving forward, where the assets will be reported at Mark-to-Market across all reports generated in Simple Invest 360, (e.g. Balance Sheet).