The cost model of accounting for PP&E assets
A) should be applied to investment property only.
B) should be applied to other PP&E assets only.
C) can be applied to all classes of PP&E including investment property.
D) is not appropriate under ASPE.

Question

Quizplus · Accepted Answer

The cost model is a generally accepted accounting principle that can be applied to all classes of PP&E, including investment property. It is a method of accounting for fixed assets where an asset is recorded at its historical cost, and no adjustments are made for changes in the asset's market value or fair value. ASPE allows for the use of the cost model as an acceptable method of accounting for PP&E.

The Cost Model of Accounting for PP&E Assets