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:

Intellectual Stimulation

The process of encouraging individuals to think critically and creatively, challenging existing assumptions and fostering innovation.

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A leadership style in which the leader is genuine, transparent, and ethical, and fosters trust by being true to themselves.

Organization Creation

The process of establishing a new enterprise or entity, including the development of its structure, culture, goals, and strategies.

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