Under Certain Circumstances, a Choice Exists Between Using the Primary

question 3

Multiple Choice

Under certain circumstances, a choice exists between using the primary method or the exception method when revaluing property, plant and equipment under AASB 116.All other things being equal, which statement is incorrect?

• A)Both methods provide the same information just after revaluation.
• B)The exception method is more time consuming than the primary method.
• C)The primary method results in the accumulated depreciation account equalling zero just after revaluation.
• D)The methods do not affect the asset's carrying amount.

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Definitions:

Postabsorptive State

The metabolic period occurring after the complete digestion and absorption of a meal, when the body begins utilizing stored nutrients for energy.

Glycogen

A large, branched polysaccharide made of glucose molecules, serving as a form of energy storage in humans, animals, fungi, and bacteria.

Glucose

An elementary sugar which is a significant source of energy within living beings and is involved in the formation of lots of carbohydrates.

Primary Energy Source

The main fuel used by cells to generate ATP, such as glucose in humans for aerobic metabolism.