Asked by Melainah Alford on May 17, 2024
Verified
For non-current assets measured using the revaluation model,no consolidation adjustment is required for fair value increases or decreases.
Revaluation Model
An accounting method allowing for the increase or decrease of an asset's value on the balance sheet, based on current fair values.
Fair Value
The price at which an asset could be exchanged or a liability settled between knowledgeable, willing parties in an arm's length transaction.
- Acquire insight into the essential doctrines and steps necessary for the integration of financial statements associated with transactions among related entities.
Verified Answer
AA
Abdullah AhmedMay 23, 2024
Final Answer :
True
Explanation :
Non-current assets measured using the revaluation model are valued at fair value less any accumulated depreciation and impairment losses. Any fair value increases or decreases are directly recorded in the revaluation surplus within equity and no consolidation adjustment is needed.
Learning Objectives
- Acquire insight into the essential doctrines and steps necessary for the integration of financial statements associated with transactions among related entities.
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