Which of the following assets cannot be revalued above their cost in the accounting records of the subsidiary?
I. Goodwill
II. Inventories
III. Land and buildings
IV. Plant and equipment
A) I, III and IV.
B) II, III and IV.
C) I and III.
D) I and II.

Question

Quizplus · Accepted Answer

Goodwill and inventories cannot be revalued above their cost in the accounting records. Goodwill is an intangible asset that arises when a company acquires another company for a price higher than the fair value of its net identifiable assets. It is not revalued because it does not have a market price that can be used to reassess its value. Inventories are valued at the lower of cost or net realizable value, and they cannot be revalued above their original cost. Land and buildings, as well as plant and equipment, can be revalued above their cost under certain accounting frameworks, such as International Financial Reporting Standards (IFRS).

Which of the Following Assets Cannot Be Revalued Above Their