Asked by Natalia Hernandez on Jul 04, 2024
Verified
When a firm that follows IFRS chooses to use the revaluation method for its tangible long-lived assets,it must use that method for all of its tangible long-lived assets.
Revaluation Method
An accounting strategy used to adjust the book value of a fixed asset to reflect its current market value.
IFRS
International Financial Reporting Standards, a set of global accounting guidelines developed by the International Accounting Standards Board, providing uniform financial statement reporting.
Tangible Long-Lived Assets
Physical assets that are used in the operations of a business, have a useful life of more than one year, and are not intended for resale.
- Comprehend the variances and commonalities in accounting for long-lived assets under IFRS and U.S. GAAP.
Verified Answer
SM
swapnil mohaneJul 06, 2024
Final Answer :
False
Explanation :
While a firm may choose to use the revaluation method for some of its tangible long-lived assets, it is not required to use this method for all of them. The choice of accounting method will depend on factors such as the nature of the assets and the intended use of financial statements.
Learning Objectives
- Comprehend the variances and commonalities in accounting for long-lived assets under IFRS and U.S. GAAP.