After an item of property, plant and equipment has been initially recognised at cost it may be measured using which measurement method?

Question

Quizplus · Accepted Answer

Property, plant and equipment can be measured using the revaluation method after initial recognition at cost. This involves measuring the asset at its fair value at the revaluation date and adjusting the carrying amount accordingly. The other options listed (liquidation value, accrual, and net realisable value) are not appropriate methods of measuring property, plant and equipment.

After an Item of Property, Plant and Equipment Has Been