If an Asset's Carrying Amount Is Increased Due to an Initial

question 30

Multiple Choice

If an asset's carrying amount is increased due to an initial revaluation that increase shall be recognised in:

• A) other comprehensive income.
• B) the profit and loss.
• C) in the disclosures.
• D) None of the given answers are correct.

---

Definitions:

Project Profitability Index

A financial metric used to evaluate the attractiveness of a project or investment, calculated as the present value of future cash flows divided by the initial investment.

Investment Proposals

Plans or suggestions put forward for consideration by stakeholders with the objective of investing resources with the expectation of generating returns.

Discount Rate

The discount rate applied in DCF analysis for calculating today's value of future cash flows.

Salvage Value

The projected value of an asset upon reaching the end of its operational lifespan.