Subsequent to initial recognition, E&E assets are required to be measured:
A) under the cost model.
B) under the revaluation model.
C) at the lower of the cost and fair value.
D) either under the cost model or revaluation model.

Question

Quizplus · Accepted Answer

According to IAS 16 Property, Plant and Equipment, entities can choose to measure E&E assets either under the cost model or revaluation model. Therefore, both choices are acceptable.

Subsequent to Initial Recognition, E&E Assets Are Required to Be