After an asset has been initially recognised at cost it may be measured using the following measurement method:

Question

Quizplus · Accepted Answer

Revaluation is the method in which an asset's value is updated periodically to reflect any changes in its fair value. This method is preferred when the asset's value can fluctuate significantly over time. However, it is important to note that this method is optional and can only be used if the fair value of the asset can be measured reliably. Therefore, option C is the best choice. Option A (liquidation value) and D (realisable value) are both methods used to value assets in specific situations and are not applicable for measuring assets on a regular basis. Option B (accrual) is not a method of measuring asset value but rather a method of accounting for expenses and revenues.

After an Asset Has Been Initially Recognised at Cost It