Long-term operating assets can be reported on the balance sheet at fair value instead of historical cost. Does this statement apply to IFRS and U.S. GAAP?
A) It applies to IFRS only.
B) It applies to U.S. GAAP only.
C) It applies to both IFRS and U.S. GAAP.
D) It does not apply to IFRS and U.S. GAAP.

Question

Quizplus · Accepted Answer

Under IFRS, companies have the option to report long-term operating assets at fair value using the revaluation model. U.S. GAAP, however, generally requires long-term operating assets to be reported at historical cost.

Long-Term Operating Assets Can Be Reported on the Balance Sheet