Revaluations increments are often a source of discussion because:
A) Historical-cost accounting has traditionally stated that unrealised holding gains should generally be treated as income.
B) A transaction with an external party is always required to recognise income.
C) Holding gains are allowed to be recognised just like any other type of profit.
D) Revaluation increments can be used to offset previous decrements across all asset classes.
E) This model loosens debt covenant restrictions.

Question

Quizplus · Accepted Answer

The Answer of Revaluations increments are often a source of discussion because:
A) Historical-cost accounting has traditionally stated that unrealised holding gains should generally be treated as income.
B) A transaction with an external party is always required to recognise income.
C) Holding gains are allowed to be recognised just like any other type of profit.
D) Revaluation increments can be used to offset previous decrements across all asset classes.
E) This model loosens debt covenant restrictions.

Revaluations Increments Are Often a Source of Discussion Because