Which of the Following Statements Is True Regarding Revaluation of Property,plant,and

question 12

Multiple Choice

Which of the following statements is true regarding revaluation of property,plant,and equipment to fair value?

• A)Only IFRS allows revaluation of property,plant,and equipment to fair value.
• B)Only U.S.GAAP allows revaluation of property,plant,and equipment to fair value.
• C)Both U.S.GAAP and IFRS allow revaluation of property,plant,and equipment to fair value.
• D)Neither U.S.GAAP nor IFRS allows revaluation of property,plant,and equipment to fair value.

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Definitions:

Equity Method

An accounting technique used to record investments in other companies, where the investment is significant but not controlling.

Stock Investments Account

An account used to record the purchases and sales of equity securities, such as shares of stock, that a company holds as investments.

Annually

Occurring once every year or relating to a period of one year.

Significant Influence

The power to participate in the financial and operating policy decisions of an investee but not control those policies.