When the Revaluation Model Is Used, the Carrying Value of the Assets

question 67

True/False

When the revaluation model is used, the carrying value of the assets after revaluation is the same, regardless of whether the elimination or proportionate method is used.

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Definitions:

Transfer of Consideration

The process by which payment is made, or value is exchanged, between parties in a transaction, often related to the acquisition of assets or services.

Cost Method

An accounting method used for investments, where the investment is recorded at its acquisition cost, without recognizing the investor's share of the investee's profit or loss until dividends are received.

Voting Shares

Shares that give the shareholder the right to vote on company matters, such as electing the board of directors, at shareholder meetings.

Net Income

The total earnings of a company after subtracting all expenses, including taxes and operational costs, indicating its profitability over a specific period.