Where the Value of Revalued Non-Current Assets Does Not Change

question 34

Multiple Choice

Where the value of revalued non-current assets does not change frequently and is not material,AASB 116 suggests that revaluations:

• A) May be undertaken when next convenient.
• B) Should be undertaken every 3 to 5 years.
• C) May be undertaken for individual assets within a class.
• D) Should be suspended and the entity should switch back to cost.
• E) None of the given answers.

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Definitions:

Construction in Progress

An accounting term for the financial balance of ongoing, unfinished construction projects, which is a non-depreciable asset on the balance sheet until the project is completed.

Partial Billings

Invoices sent to clients or customers for a portion of the work completed or products delivered, commonly used in long-term projects.

Current Liability

An entity's financial liabilities that must be settled with lenders within a twelve-month period.

Revenue Recognition

Revenue Recognition is the accounting principle that dictates the specific conditions under which revenue is recognized or accounted for.