If a Company Chooses the Revaluation Model Permitted in IAS

question 3

Multiple Choice

If a company chooses the revaluation model permitted in IAS 16 for fixed asset measurement:

• A) annual revaluations must be performed on each class of assets.
• B) it must update the valuation so that the balance sheet represents fair value on the balance sheet date.
• C) appraisals must be performed by an official of the IASB.
• D) the depreciated replacement cost must be used as the fair value of the fixed asset.

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Definitions:

Linea Alba

A fibrous structure that runs down the midline of the abdomen, forming the median attachment of the abdominal muscles.

Rectus Abdominis

A long muscle of the abdomen whose contraction results in flexion of the lumbar spine or helps in compressing the abdominal cavity.

External Abdominal Oblique

A muscle located in the lateral part of the abdomen, involved in trunk rotation and lateral flexion.

Transversus Abdominis

A muscle layer of the anterior and lateral abdominal walls which is deep to the internal oblique muscle.