CERTYNEX IFRS ACADEMY

The standard applicable to Fairia's fixed assets allows a measurement model to be chosen by class of assets (context data). Fairia applies the revaluation model to some of its land and the cost model to the rest, depending on price movements. What is the error?

Categorisation of assets is never permitted by IFRSs.

There is no error: the category allows an asset-by-asset choice.

The cost model is prohibited whenever another model is available.

Within the 'land' category, the policy is not applied consistently.