Managers must choose from which of the following when recording non-current assets?

Question

Quizplus · Accepted Answer

When recording non-current assets, managers can choose between the cost model or revaluation model. The cost model values assets at their historical cost less any accumulated depreciation and impairment loss, while the revaluation model values assets at their fair value less any accumulated depreciation and impairment loss. The choice between the two depends on the nature of the assets and the reporting objectives of the organization. However, the cost model is generally considered the most appropriate for most non-current assets, as it provides a reliable and verifiable measure of the asset's value over time.

Managers Must Choose from Which of the Following When Recording