alleryStart learning →Under the revaluation model, an asset is carried at which amount?
AOriginal cost left unchanged
BFair value less later depreciation
CRecoverable amount, undepreciated
DNet realisable value at year end
Answer & Solution
Correct answer: B. Fair value less later depreciation
The revaluation model uses the fair value at the revaluation date less subsequent depreciation, if fair value is reliably measurable.
Keep practising Ind AS 2 Inventories and Ind AS 16 Property, Plant and Equipment
Browse all Ind AS 2 Inventories and Ind AS 16 Property, Plant and Equipment questions for CA Final, or explore more Financialreporting topics.
Related questions
How do fixed assets differ from inventory in holding purpose?Why can depreciation on historical cost alone lead to excessive dividends when prices riseIn the appraisal method, who determines fair market value?In indexation, what is applied to the cost of assets?Why might fixed assets be revalued?Which terms apply to natural resources and intangibles respectively?Which event may indicate that an asset is impaired?How is depreciation treated in the cash flow statement?