If a Company Chooses the Revaluation Model Permitted in IAS

question 3

Multiple Choice

If a company chooses the revaluation model permitted in IAS 16 for fixed asset measurement:

• A) annual revaluations must be performed on each class of assets.
• B) it must update the valuation so that the balance sheet represents fair value on the balance sheet date.
• C) appraisals must be performed by an official of the IASB.
• D) the depreciated replacement cost must be used as the fair value of the fixed asset.

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Definitions:

Ambiguous Situations

Circumstances in which information is unclear or lacking, leading to uncertainty and difficulty in decision-making.

Leaner Media

Communication channels that convey messages with minimal use of cues, such as facial expressions or voice variation, often resulting in more straightforward, less rich information exchange.

Media Richness

The ability of a communication medium to effectively convey complex information and promote understanding, often involving feedback, cues, and personal focus.

Sincerity

The quality of being free from pretense, deceit, or hypocrisy.