CERTYNEX IFRS ACADEMY

Lactavia, a cooperative, holds a class of milk production quotas, almost all traded on an active market, and a separate class of software. It is considering adopting the revaluation model for its quotas. Which statements are correct? More than one answer may be correct.

If it revalues one quota, it must revalue all quotas in the class that have an active market.

It may revalue its quotas while keeping its software under the cost model.

It may revalue only the quotas whose market price has risen.

A quota in the class with no active market stays at cost less amortisation and impairment losses.

The fair value of the revalued quotas may be set by management without reference to the market.