When valuing assets,the U.S.GAAP allows an asset to be decreased if its value decreases,but cannot be increased if the value increases later.What is the IASB standard for this activity?
A) The value of the asset must remain as initially recorded.
B) The value of the asset must be increased annually.
C) The value of the asset can be averaged over time.
D) The value of the asset can be increased to reflect the increased market value.
E) The value of the asset must remain the same for four accounting cycles, then can be changed to reflect current market value.

Question

Quizplus · Accepted Answer

The IASB standard allows for an asset to be increased to reflect its increased market value, similar to the concept of "revaluation" under IFRS. This means that the carrying value of an asset can be adjusted upwards if its fair value increases, providing more relevant and reliable information to users of financial statements.

When Valuing Assets,the U