Under IFRS:
A) plant assets can be revalued downward, but not upwards to reflect their current value.
B) straight-line depreciation is not allowed.
C) gains, but not losses, can be recorded on the disposal of an asset.
D) a component approach is used to depreciate a building.

Question

Quizplus · Accepted Answer

Under IFRS, a component approach is used to depreciate a building, meaning that different parts of the building can be depreciated at different rates. A is incorrect because plant assets can be revalued both upward and downward to reflect their current value. B is incorrect because straight-line depreciation is allowed as one of the acceptable methods for calculating depreciation under IFRS. C is incorrect because both gains and losses on the disposal of an asset are recorded under IFRS.