Companies electing to revalue their fixed assets under IFRS are allowed to
A)only increase the carrying value of the fixed asset.
B)only decrease the carrying value of the fixed asset.
C)only increase the historical cost of the fixed asset.
D)only decrease the historical cost of the fixed asset.
E)increase or decrease the carrying value of the fixed asset.

Question

Quizplus · Accepted Answer

Companies electing to revalue their fixed assets under IFRS are allowed to increase or decrease the carrying value of the fixed asset. This means that the carrying value can be adjusted upward to reflect an increase in the fair value of the asset, or downward to reflect a decrease in the fair value of the asset. This approach allows companies to more accurately reflect the value of their fixed assets on the balance sheet.

Companies Electing to Revalue Their Fixed Assets Under IFRS Are