It is possible to measure assets in several ways: the possible ways include:
I.$\quad$cost – an input or entry measure
II.$\quad$replacement cost – an input or entry measure for a equivalent asset in new condition (an input or entry measure)
III.$\quad$value in use (present value of future cash flows)
IV.$\quad$current cost – the cost of replacing the production capacity that an asset had when new (an input or entry measure)
V.$\quad$fair value less cost to sell
VI.$\quad$fair value used under revaluation model
-When the revaluation model is adopted, the carrying amount at reporting date is measured by:
A)VI in all cases
B)VI, except when VI is less than IV, in which case IV is used
C)IV in all cases
D)VI, except when the both III and V are less than VI, when the greater of III and V is used

Question

Quizplus · Accepted Answer

When the revaluation model is adopted, the carrying amount at reporting date is measured by fair value used under revaluation model (VI), except when both value in use (III) and fair value less cost to sell (V) are less than VI, in which case the greater of III and V is used. Therefore, option D is the correct choice.

It Is Possible to Measure Assets in Several Ways: the Possible