Once a class of non-current assets has been revalued,AASB 116 requires that:
A) Directors continue to revalue the class of assets on an ad hoc basis.
B) Revaluations must be undertaken regularly enough to ensure that the carrying amount of each asset in the class of assets does not differ materially from its fair value at reporting date.
C) All assets in the class must be revalued every 3 years.
D) Revaluations must be undertaken regularly enough to ensure that the carrying amount of the class of assets does not differ from its fair value at reporting date.
E) None of the given answers.

Question

Quizplus · Accepted Answer

AASB 116 requires that once a class of non-current assets has been revalued, revaluations must be undertaken regularly enough to ensure that the carrying amount of each asset in the class of assets does not differ materially from its fair value at reporting date. There is no requirement for directors to undertake ad hoc revaluations, all assets in the class to be revalued every 3 years, or to ensure that the carrying amount of the class of assets does not differ from its fair value at reporting date. Therefore, option B is the correct answer.

Once a Class of Non-Current Assets Has Been Revalued,AASB 116