Under the fair value model, buildings must be depreciated over their useful lives.

Name: Under the fair value model, buildings must be depreciated over their useful lives.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Under the fair value model, buildings are not depreciated over their useful lives. Instead, they are reported at their fair value, which is the amount that would be received if they were sold in an arm's length transaction between knowledgeable and willing parties. Any changes in fair value are recognized in the income statement.

Under the Fair Value Model, Buildings Must Be Depreciated Over