Which statement describes the "revaluation model"?
A)A model which keeps the carrying value of an asset and adjusts for depreciation and impairment.
B)A model which restates the value of an asset at each measurement date.
C)A model which restates the carrying value of an asset to the asset's fair value on the date of revaluation.
D)A model which values the asset based on its productive capacity.

Question

Quizplus · Accepted Answer

The revaluation model involves restating the carrying value of an asset to its fair value on the date of revaluation. This differs from the cost model, which keeps the carrying value of an asset and adjusts for depreciation and impairment. Option D refers to the productive capacity model, which is not related to asset valuation but rather focuses on the asset's ability to generate revenue. Option B may be a valid approach in some instances, but it is not specifically related to the revaluation model.

Which Statement Describes the "Revaluation Model