Which of the following statements is true of revaluation model in AASB 116?
A) It is the preferred model of managers with bonus based payments.
B) It is required under AASB 116.
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, as per AASB 116, is not required but is an allowed alternative to the cost model for the measurement of property, plant, and equipment after initial recognition. Firms can switch between the revaluation model and the cost model, provided the change is made in accordance with the accounting standards. Therefore, statements A, B, and C are incorrect, making D the correct choice.

Which of the Following Statements Is True of Revaluation Model