Revaluations that occur must be upward or downward from an asset's:
A) carrying amount.
B) net realisable value.
C) lower of cost and net realisable value.
D) original cost.

Question

Quizplus · Accepted Answer

Revaluations are adjustments made to an asset's carrying amount to reflect its fair value. The carrying amount is the value at which an asset is recognized in the financial statements, so revaluations can only be upward or downward from this amount. Net realisable value, lower of cost and net realisable value, and original cost are all related to the initial cost of the asset and do not necessarily reflect its current fair value.

Revaluations That Occur Must Be Upward or Downward from an Asset's