Under certain circumstances, a choice exists between using the primary method or the exception method when revaluing property, plant and equipment under AASB 116.All other things being equal, which statement is incorrect?
A)Both methods provide the same information just after revaluation.
B)The exception method is more time consuming than the primary method.
C)The primary method results in the accumulated depreciation account equalling zero just after revaluation.
D)The methods do not affect the asset's carrying amount.

Question

Quizplus · Accepted Answer

Both methods result in the same carrying amount of the asset after revaluation, so they provide the same information. Therefore, statement A is incorrect. The primary method results in the accumulated depreciation account equalling zero just after revaluation, while the exception method does not affect the accumulated depreciation. The exception method is generally less time consuming than the primary method, as it requires less detailed calculations. However, the methods could affect the asset's carrying amount, as the accumulated depreciation can impact the carrying amount of the asset.

Under Certain Circumstances, a Choice Exists Between Using the Primary