Under AASB 116 When an Asset Is Revalued and the Net

question 16

Multiple Choice

Under AASB 116 when an asset is revalued and the net method is used,accumulated depreciation:

• A) must be written back to profit.
• B) must be closed off to equity account.
• C) should be eliminated against the gross carrying amount of the asset before revaluation.
• D) should be increased by the same proportion as the gross carrying amount of the asset so that the carrying amount of the asset after revaluation equals the revalued amount.
• E) None of the given answers.

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