Which of the following statements is true of revaluation model in IAS 16?
A)It is the preferred model of managers with bonus based payments.
B)It is required under IAS 16.
C)Once adopted the firm can no longer revert back to cost model.
D)None of the statements are correct.

Question

Quizplus · Accepted Answer

The revaluation model is not required under IAS 16, it is an option. Managers with bonus-based payments might prefer the cost model to avoid volatility in earnings. A firm can revert back to the cost model if it chooses.

Which of the Following Statements Is True of Revaluation Model