A change in accounting policy from the revaluation model to the cost model requires a retrospective adjustment to the:

Question

Quizplus · Accepted Answer

A change from the revaluation model to the cost model requires a retrospective adjustment to the carrying amount of the asset, which is reflected in the opening balance of retained earnings. This adjustment would not impact revenue or expenses in the profit or loss statement, or other comprehensive income.

A Change in Accounting Policy from the Revaluation Model to the Cost