Question

IFRS companies can use either the historical cost model or the revaluation model

a) Companies must always use the historical cost model.
b) Companies must always use the revaluation model.
c) Companies can choose either the historical cost model or the revaluation model.
d) Companies are required to use both the historical cost model and the revaluation model concurrently.

Answer 1

The correct answer is that IFRS companies can choose either the historical cost model or the revaluation model.

Step-by-step explanation:

The correct answer to this question is c) Companies can choose either the historical cost model or the revaluation model.

International Financial Reporting Standards (IFRS) companies have the flexibility to select the accounting model that best aligns with their needs and financial reporting objectives.

Under the historical cost model, assets are measured and reported at their original cost, while under the revaluation model, assets can be reported at their fair value, which is based on market prices or other valuation techniques.

Therefore, the correct answar is c) Companies can choose either the historical cost model or the revaluation model.