IFRS Allows Companies to Revalue Plant Assets to Fair Value

question 60

Multiple Choice

IFRS allows companies to revalue plant assets to fair value. Which of the following statements is true regarding revaluation?

• A) At the time a company purchases an asset it must decide whether to follow revaluation procedures for the asset; once the election is made it must be followed for the remainder of the asset's useful life.
• B) Assets that are experiencing rapid price changes must be revalued quarterly other assets can be revalued on an annual basis.
• C) The journal entry to record a revaluation when the asset's price has increased includes a credit to the account revaluation surplus.
• D) All of the choices are correct regarding revaluation of plant assets.

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Definitions:

Tax Return

The form or forms used to report income and file income taxes with tax authorities, including information on income earned, deductions, and credits claimed.

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Personal and Dependency Exemptions

Tax deductions previously allowed for the taxpayer, their spouse, and eligible dependents, though suspended for federal taxes from 2018 through 2025.