CAF-1 · Chapter 3 · Question 9 of 15
Under the revaluation model, how frequently should revaluations be made?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) With sufficient regularity so the carrying amount does not differ materially from fair value.
Explanation
Revaluations must be made with sufficient regularity to ensure the carrying amount does not differ materially from fair value at the end of the reporting period.
More IAS 16 Property, Plant and Equipment MCQs
- Q11A change in the depreciation method applied to an asset is accounted for as:
- Q12Under IAS 16, which of the following is NOT a required disclosure for each class of PPE?
- Q13When an asset is disposed of, where is the gain or loss on derecognition reported?
- Q14Which of the following best describes the 'depreciable amount' of an asset?
- Q15How often must an entity review the residual value and useful life of an asset?