IFRS permits the presentation of plant assets at their fair market value.

Question

Quizplus · Accepted Answer

Under IFRS, the presentation of plant assets at fair market value is permitted as an accounting policy choice, though such a choice is not a requirement. Depending on the nature of the asset, this may result in fluctuations in reported profits or losses over time. It is worth noting that fair market value may be different from the historical cost of the asset, which is based on the original purchase price and any subsequent improvements or maintenance costs.

IFRS Permits the Presentation of Plant Assets at Their Fair