Once a class of non-current assets has been revalued,AASB 116 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

According to AASB 116, once a class of non-current assets has been revalued, 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 done on a regular basis and are not limited to a specific time frame (such as every 3 years). Option A is incorrect because ad hoc revaluations are not adequate to ensure compliance with the standard. Option D is incorrect because it refers to the carrying amount of the class of assets rather than each individual asset.

Once a Class of Non-Current Assets Has Been Revalued,AASB 116