After initial recognition, an entity has a choice of applying either the cost model or the revaluation model to an entire class of property, plant and equipment.

Question

Quizplus · Accepted Answer

According to IAS 16 Property, Plant and Equipment, after initial recognition, an entity can choose to apply either the cost model or the revaluation model as its accounting policy, and this choice must be applied to an entire class of property, plant, and equipment, not on an individual asset basis.

After Initial Recognition, an Entity Has a Choice of Applying