Which of the following statements isincorrect ? A)Under the revaluation model, the carrying amount of property, plant and equipment is adjusted to reflect its fair value. B)With the revaluation model, revaluation gains are recorded in Other Comprehensive Income. C)Companies can choose to use the cost model or the revaluation model for property, plant and equipment. D)Reversals of revaluation gains or write-ups are prohibited.

Question

Quizplus · Accepted Answer

Reversals of revaluation gains or write-ups are not prohibited; they can be reversed if the asset's carrying amount decreases, reflecting changes in fair value. This adjustment is made through profit or loss if it represents the reversal of a revaluation decrease previously recognized in profit or loss, or through other comprehensive income if it reverses a revaluation increase previously recognized in equity.

Which of the Following Statements Isincorrect