Under the cost model, self-constructed assets may be recorded at fair market value if the company so wishes, regardless of costs incurred to date.

Name: Under the cost model, self-constructed assets may be recorded at fair market value if the company so wishes, regardless of costs incurred to date.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Under the cost model, self-constructed assets are recorded at cost, which includes all costs incurred to date to build the asset. Fair market value accounting is used under the revaluation model.

Under the Cost Model, Self-Constructed Assets May Be Recorded at Fair