Question

Which of the following statements in relation to the accounting for property, plant and equipment under...

Which of the following statements in relation to the accounting for
property, plant and equipment under IAS 16 is false?
a.
Revalued assets must be professional valued every year.
b.
Assets, other than land, whose value is rising must still be depreciated.
c.
The historical cost of revalued assets must be disclosed in the financial statements.
d.
When a company chooses to revalue an asset, it must account for all assets in that asset class on a revalued basis.
Business   Accounting   
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Homework Answers

Answer #1

AFTER RECOGNITION AS AN ASSET, AN ITEM OF PROPERTY, PLANT AND EQUIPMENT WHOSE FAIR VALUE CAN BE MEASURED RELIABLY SHALL BE CARRIED AT A REVALUED AMOUNT, BEING ITS FAIR VALUE AT THE DATE OF THE REVALUATION LESS ANY SUBSEQUENT ACCUMULATED DEPRECIATION AND SUBSEQUENT ACCUMULATED IMPAIRMENT LOSSES.

SO ASSET IS VALUED AT REVALUED AMOUNT AFTER REVALUATION

SO OPTION C IS FALSE THAT THE HISTORICAL COST OF REVALUED ASSETS MUST BE DISCLOSED IN THE FINANCIAL STATEMENTS.

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