The Reason That the Revaluation Model Is NOT Widely Used

question 73

Multiple Choice

The reason that the revaluation model is NOT widely used for measuring intangible assets after initial recognition is that

• A) it is not allowed under IFRS.
• B) the cost method is easier to use.
• C) it can be applied only to intangible assets with a fair value determined in an active market.
• D) it requires an extensive internal investigation to determine fair value.

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Definitions:

Adoption of New Technology

The process by which individuals, businesses, or societies begin using new technological tools, systems, or products, often to improve efficiency, productivity, or quality of life.

Government Aid

Financial assistance or other resources provided by the government to individuals, organizations, or countries in need.

Profit-Making Organizations

Entities that operate with the primary goal of earning revenue in excess of their operational costs.

Private Non-Profit Agencies

Organizations that operate independently from government control, not seeking to generate profits for owners or shareholders, and often focused on serving social or community-based causes.