An entity that elects the revaluation model to measure a class of asset is permitted to revert back to the cost model provided that this will provide more relevant and reliable information.

Question

Quizplus · Accepted Answer

This statement is true according to International Accounting Standard (IAS) 16 Property, Plant and Equipment, which states that an entity can choose to use the revaluation model to measure a class of assets, but can revert back to the cost model if the revaluation model is no longer relevant or reliable.

An Entity That Elects the Revaluation Model to Measure a Class