Final answer:
The frequency of asset revaluation under the revaluation model varies and is influenced by the volatility of asset fair values. Regular revaluations are required to ensure asset carrying amounts do not significantly differ from their fair values, with more volatile assets needing more frequent reassessment.
Step-by-step explanation:
The frequency with which assets should be revalued under the revaluation model can vary depending on the volatility of the fair values of the asset classes being revalued. According to the International Financial Reporting Standards (IFRS), particularly IAS 16, there is no strict timetable set for revaluation. However, it is advised that revaluation should occur with sufficient regularity such that the carrying amount of assets does not differ significantly from their fair value at the balance sheet date.
For assets with highly volatile market values, a revaluation might be necessary annually. On the other hand, for more stable assets, revaluation might be performed every three to five years. It should be noted that revaluation should be consistent amongst assets within the same class, and any changes or deviations in revaluation frequency must be justifiable and should reflect changes in market conditions.
Moreover, if a significant change is observed in the fair value of an asset, an interim revaluation may be required, irrespective of when the last revaluation took place. This ensures that the financial statements provide an accurate and real-time representation of the company's asset values.