Which of the Following Statements Is True of Revaluation Model

question 11

Multiple Choice

Which of the following statements is true of revaluation model in IAS 16?

• A)It is the preferred model of managers with bonus based payments.
• B)It is required under IAS 16.
• C)Once adopted the firm can no longer revert back to cost model.
• D)None of the statements are correct.

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Definitions:

Tipper

An individual who provides privileged, non-public information to another person, typically about securities trading.

Tippee

A person who receives inside information.

Material Fact

A fact that, if known, would influence a person's decision-making related to a contract, transaction, or legal case.

Insider Trading

The unlawful act of conducting trades on the stock market for personal gain by exploiting privileged, non-public information.