Which of the following statements is a valid reason to select cost model over the revaluation model?
A) to report relevant information
B) to reduce taxes
C) to properly match costs with expenses
D) to simplify the measurement accounting policy

Question

Quizplus · Accepted Answer

Cost model is usually simpler to implement and requires less effort and expertise compared to revaluation model. Therefore, if the main concern is simplifying the measurement accounting policy, cost model would be the preferred choice. However, if the priority is to report relevant information about the asset's fair value, the revaluation model should be selected instead.

Which of the Following Statements Is a Valid Reason to Select