Revaluation Model Is Allowed Under IFRS Mainly Because It Is

question 224

Multiple Choice

Revaluation model is allowed under IFRS mainly because it is useful in countries where

• A) there is a high inventory turnover.
• B) companies cannot estimate fair value of assets.
• C) there is a high inflation rates.
• D) companies cannot determine an appropriate method of depreciation.

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Definitions:

Units Transferred

Refers to the movement of goods from one stage of production to another or from the production department to the finished goods inventory.

First-In, First-Out

An inventory valuation method where goods produced or acquired first are sold or disposed of before newer inventory, reflecting the actual flow of goods.

Process Costing

A method of costing used in manufacturing where costs are assigned to batches or production runs, typically for similar products.

Equivalent Units

A concept used in cost accounting to convert partial units of production into a number of fully completed units.