Which of the following statements is not true?
A)IFRS require that estimates of residual value and the life of the asset be reviewed at least annually and revised if necessary.
B)The FASB standards do not have a specific rule that requires residual value and asset life to be reviewed annually.
C)IFRS do not have a specific rule that requires residual value and asset life to be reviewed annually.
D)The FASB generally requires operating assets to be recorded at acquisition cost,less depreciation,and the assets' values are not changed to reflect their fair market values or selling prices.

Question

Quizplus · Accepted Answer

This statement is not true because IFRS do require that estimates of residual value and asset life be reviewed at least annually and revised if necessary. A is true because it is a requirement under IFRS. B is partially true because while FASB does not have a specific rule, it does require entities to periodically evaluate the appropriateness of the assumptions used in determining asset values. D is also true because US GAAP (which FASB standards are part of) generally requires operating assets to be recorded at cost less depreciation, and not at their fair market value.

Which of the Following Statements Is Not True