In a business combination the revaluation of non-current assets in the records of the subsidiary means that the subsidiary has effectively adopted the:
A)parent-entity model of consolidation
B)proprietary model of accounting
C)cost model of accounting
D)revaluation model of accounting.

Question

Quizplus · Accepted Answer

The revaluation of non-current assets is based on the revaluation model of accounting, which allows for the assets to be carried at their fair value. This model is consistent with IFRS Standards and is available as an accounting policy choice. Therefore, the adoption of the revaluation model indicates that the subsidiary is no longer using the cost model of accounting but instead, has adopted a revaluation model.

In a Business Combination the Revaluation of Non-Current Assets in the Records