Under IAS 2 Revaluations Are Permitted

question 32

Multiple Choice

Under IAS 2 revaluations are permitted:

• A)only in the form of a write-down.
• B)only when an independent valuation is made by an external party.
• C)only if upward revaluations are credited to an inventory revaluation reserve.
• D)only if the replacement cost of the asset is higher than the historical cost.

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Definitions:

Unique Product

A product that stands out from others due to its distinctive characteristics, features, or innovation.

Competitive Advantage

The unique positioning and strategy that enable a business to generate greater sales or margins than its competition.

Barriers to Entry

Economic, procedural, or regulatory hurdles that inhibit new competitors from easily entering an industry or area of business.

Social Progress

The advancement of society through improvements in education, healthcare, technology, and standard of living, among other factors.