According to International Financial Reporting Standards (IFRS), the Revaluation of Equipment

question 156

Multiple Choice

According to International Financial Reporting Standards (IFRS) , the revaluation of equipment when fair value exceeds book value, results in:

• A) An increase in net income.
• B) A decrease in net income.
• C) An increase in other comprehensive income.
• D) A decrease in other comprehensive income.

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Definitions:

Equivalent Units

A concept used in process costing that converts partially completed goods into a number of fully completed units.

Weighted-Average Method

A method of inventory valuation that assigns a cost to inventory on the basis of the average cost of all similar items in the inventory.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a specific product and included in its cost.

Conversion Costs

Expenditures associated with transforming raw materials into final products, often comprising direct labor costs and indirect manufacturing expenses.