The Methods Allowed by the IFRS for Valuing Property, Plant

question 43

Multiple Choice

The methods allowed by the IFRS for valuing property, plant, and equipment are:

• A) historic cost and general purchasing power.
• B) historic cost and fair value.
• C) fair value and general purchasing power.
• D) fair value and inflation-adjustment.

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Definitions:

Equity Changes

Refers to the alterations in the owners' equity over a specific period due to net income, dividend payments, and capital injections.

Compound Entry

An accounting entry that involves multiple debits and/or credits in a single journal entry, typically used when a transaction affects more than two accounts.

Income Statement

A financial statement that provides a summary of a company's revenues, expenses, and profits or losses over a specific period of time.

Revenues

Aggregate income produced from the core activities of a business, mainly through the sale of goods and services.