Question

A company that maintains its books and records under IFRS is applying the revaluation model to a certain fixed asset. In previous years, the value of the asset had declined. In the current year, however, the asset has appreciated in value by an amount that is greater than the cumulative decrease that had occurred previously. How will the company report the asset on the year-end balance sheet for the current year

Answer 1

Answer: See explanation

Step-by-step explanation:

The revaluation model is when the fixed asset of a business or an organization is carried at its revalued amount.

Based on the question asked, the asset will be valued based on the new fair value with regards to the increase. It should be noted that the remainder recognized will then be recognized in the other comprehensive income.