If an organization selects the revaluation model, it should revise its depreciation amount with each new carrying amount.

Question

Quizplus · Accepted Answer

Under the revaluation model, the carrying amount of an asset is adjusted to its fair value, and any increase or decrease in value is recognized in other comprehensive income. Since the depreciation amount is based on the carrying amount, it should be revised each time the carrying amount is adjusted to reflect the changes in the asset's fair value.

If an Organization Selects the Revaluation Model, It Should Revise