When an Entity Adopts the Valuation Model to Account for Its

question 16

Multiple Choice

When an entity adopts the valuation model to account for its property,plant and equipment,which of the following statement(s) is/are correct?

• A) If an item is revalued, all assets in the same class shall be revalued.
• B) If an asset's carrying amount is decreased as a result of a revaluation, the decrease is always recognised in profit and loss.
• C) If an asset's carrying amount is increased as a result of a revaluation, the increase is always credited directly to equity.
• D) All of the given answers.

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Definitions:

Thyroid Gland

A butterfly-shaped gland located in the front part of the neck, responsible for producing hormones that regulate metabolism and energy generation.

Anterior Pituitary Gland

The front portion of the pituitary gland, which produces and releases hormones that regulate diverse body functions, including growth and reproduction.

Pars Nervosa

The posterior part of the pituitary gland, which releases hormones stored in axon terminals from the hypothalamus.

Electrolyte Concentrations

The measure of the levels of electrolytes, such as sodium, potassium, and chloride, in the body, critical for maintaining proper fluid balance and muscle function.