Flexibility in valuation of property,plant,and equipment under IFRS may cause problems with comparability of one company with another.

Question

Quizplus · Accepted Answer

The flexibility in valuation of property, plant, and equipment under IFRS allows companies to use different methods, assumptions, and estimations, which may lead to differences in the carrying amounts and depreciation expenses of similar assets among different companies. As a result, comparability of financial statements of one company with another could be affected.

Flexibility in Valuation of Property,plant,and Equipment Under IFRS May Cause