Question

Under IFRS, an entire class of property, plant, and equipment may be accounted for according to the

Cost Model	Revaluation Model

No

Yes

No

No

Yes

No

Yes

Yes

Answer 1

Answer:

Yes

Yes

Explanation:

Internal Accounting Standards 16 Property, Plant and Equipment state initial measurement should be made at cost and subsequent measurement can be done either cost model or revaluation model in order to depreciate the value of the property, plant, and equipment on a systematic basis over the economic life of the property, plant, and equipment. Cost model states the property, plant, and equipment should be carried at cost less accumulated depreciation. Revaluation model states the property, plant, and equipment carried at revalued amount subject to the condition of fair value is measured reliably.