Under the Revaluation Model, When as Asset Is Written Down

question 13

Multiple Choice

Under the revaluation model, when as asset is written down to fair value, which of the following statements is incorrect?

• A)Property plant and equipment can be valued at market value if market value can be measured reliably.
• B)The loss recorded when a capital asset is written down flows through other comprehensive income, so that net income is not affected.
• C)The company is required to value all similar assets in the same way.
• D)Under IFRS, a write down reduces the carrying amount of the capital asset and the loss is charged to net income.

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Definitions:

Instinctual Influences

Innate, biological drives or motivations that impact human behavior and decision-making, often operating outside of conscious awareness.

Neo-Freudian Theorist

Psychologists who have adapted and expanded upon Sigmund Freud's original theories of psychoanalysis while incorporating their own beliefs about the human psyche and behavior.

Freud

Sigmund Freud, an Austrian neurologist who founded the field of psychoanalysis, known for his theories on the unconscious mind, the Oedipal complex, and the structure of personality.

Collective Unconscious

The part of the unconscious mind containing thoughts, images, and psychic characteristics common to all members of a culture.