AASB 136 requires that:
A) If a non-current asset is revalued, the revalued amount may be less than the recoverable amount.
B) If a non-current asset is revalued, it must be revalued to the lower of current replacement cost or net realisable value.
C) If a non-current asset is revalued, it must be revalued to the amount for which an asset could be exchanged between knowledgeable, willing parties in an arm's length transaction.
D) If a non-current asset is revalued, it must be revalued to the amount for which the asset could be realised in an active market in a liquidation sale.
E) None of the given answers.

Question

Quizplus · Accepted Answer

AASB 136 requires that if a non-current asset is revalued, it must be revalued to the amount for which an asset could be exchanged between knowledgeable, willing parties in an arm's length transaction. This is also known as fair value. Options A, B, and D do not accurately reflect the requirements of AASB 136. Option E is not valid as it does not provide a correct answer.

AASB 136 Requires That