Which of the Following Is/are Not True Regarding the Fair

question 83

Multiple Choice

Which of the following is/are not true regarding the fair value of long-lived assets?

• A)U.S.GAAP does not permit firms to increase the balance sheet carrying values of tangible and intangible long-lived assets when the fair values of their assets increase.
• B)IFRS permits upward asset revaluations, the recognition of unrealized increases in the fair value of tangible and intangible long-lived assets under certain conditions.
• C)IFRS requires that firms credit the increase in the tangible and intangible revalued asset's balance sheet carrying value to net income.
• D)U.S.GAAP firms recognize the increase in the fair value of the tangible and intangible asset only as the firm realizes the value increase through either sale or continuing use.
• E)all of the above

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Definitions:

Ownership Interest

A stake or share in a company or property, representing the holder's right to its assets and profits.

Regulatory Requirements

Rules and guidelines imposed by governing bodies that companies must follow to be compliant in their operational, financial, or ethical practices.

Full Goodwill Method

An accounting approach that recognizes the full fair value of goodwill in the acquisition of a subsidiary, not just the portion attributable to the parent company.