IAS 16Chapter 7Lesson 1
The revaluation model: conditions, fair value, frequency and the entire class
Step 1 of 8Learning objectives
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When an entity chooses to revalue a class of property, plant and equipment: fair value must be reliably measurable, the whole class is revalued, often enough for the carrying amount to stay close to fair value, and accumulated depreciation is either restated or eliminated at each revaluation.
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Learning objectives
- Explain what the revalued amount consists of and under which conditions the revaluation model can be applied.
- Identify the standard that defines fair value and assess the documentation of an external valuation.
- Determine whether a new revaluation is needed and whether a rolling revaluation complies with the entire-class rule.
- Calculate and record the treatment of accumulated depreciation under each of the two approaches.