If Market-Value Accounting (Also Known as CoCoA or Exit-Price Accounting)were

question 42

Multiple Choice

If market-value accounting (also known as CoCoA or exit-price accounting) were to be applied in a set of accounts,then typically the treatment for recording depreciation would be:

• A) restate the residual value and the cost to exit price and recalculate the depreciation.
• B) restate the cost but leave the residual value unchanged and recalculate the depreciation.
• C) no depreciation is recognised.
• D) continue to charge the same depreciation and recognise any changes in value in the income statement.