Once a class of non-current assets has been revalued,IAS 16 requires that:
A)Directors continue to revalue the class of assets on an ad hoc basis.
B)Revaluations must be undertaken regularly enough to ensure that the carrying amount of each asset in the class of assets does not differ materially from its fair value at reporting date.
C)All assets in the class must be revalued every 3 years.
D)Revaluations must be undertaken regularly enough to ensure that the carrying amount of the class of assets does not differ from its fair value at reporting date.

Question

Quizplus · Accepted Answer

IAS 16 requires that revaluations must be undertaken regularly enough to ensure that the carrying amount of each asset in the class of assets does not differ materially from its fair value at reporting date. This means that revaluations must be undertaken regularly and frequently enough to ensure that the carrying amount of each asset in the class reflects its fair value at the reporting date, and that it does not result in any material misstatements in the financial statements. Therefore, option B is the correct answer.

Once a Class of Non-Current Assets Has Been Revalued,IAS 16