IFRS allows two different models for accounting for long-lived tangible assets: the cost method and appraisal method.

Cost Method

An accounting method used for investments, where the investment is recorded at cost and adjustments are only made for impairments or additional investments, without recognizing unrealized gains or losses.

Appraisal Method

An evaluation process to determine the value of an asset, often used for real estate and investments, based on various criteria.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that serve as a global framework for financial statements.