Which of the following measurement bases are acceptable for property,plant and equipment?
A) historical cost
B) revaluation model
C) fair value model
D) historical cost and revaluation model

Question

Quizplus · Accepted Answer

Both historical cost and revaluation model are acceptable measurement bases for property, plant and equipment according to IFRS. Historical cost measures the asset at cost less accumulated depreciation, while under the revaluation model, the asset is measured at fair value less accumulated depreciation. Therefore, D is the best choice. The fair value model, on the other hand, is not an acceptable measurement basis for property, plant and equipment under IFRS, although it is accepted for some other types of assets or liabilities.

Which of the Following Measurement Bases Are Acceptable for Property,plant