Under International Financial Reporting Standards, the models which companies can choose to account for their long-lived assets are
A) cost model and units-of-production model.
B) units-of-production model and diminishing-balance model.
C) revaluation model and straight-line model.
D) cost model and revaluation model.

Question

Quizplus · Accepted Answer

Under IFRS, companies can choose between the cost model and the revaluation model to account for their long-lived assets. The cost model involves carrying the asset at its cost less any accumulated depreciation and impairment losses, while the revaluation model allows for the asset to be carried at a revalued amount, which is its fair value at the date of revaluation less any subsequent accumulated depreciation and impairment losses.

Under International Financial Reporting Standards, the Models Which Companies Can