The Reason That the Revaluation Model Is NOT Widely Used

question 73

Multiple Choice

The reason that the revaluation model is NOT widely used for measuring intangible assets after initial recognition is that

• A) it is not allowed under IFRS.
• B) the cost method is easier to use.
• C) it can be applied only to intangible assets with a fair value determined in an active market.
• D) it requires an extensive internal investigation to determine fair value.

---

Definitions:

Strategic Management

The ongoing planning, monitoring, analysis, and assessment of all necessities an organization needs to meet its goals and objectives.

Competitive Advantages

Unique attributes or capabilities that allow a company to outperform its competitors, including superior products, processes, or technologies.

Intangible

Describes assets or values not having physical substance but still of great importance, such as brand reputation, intellectual property, or goodwill.

Market-Based View

A strategic perspective that emphasizes the importance of external market conditions in developing a firm's strategy.