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Sir, can I know is there any similarities in term of MEASUREMENT model for PPE (revaluation model) and IP (FV model)?
thanksWhat similarities / differences are you looking for?
Fair value is re-assessed each year for both of them … if that’s what you mean
OK?
Is revaluation reassessed every year? I thought revaluation is revalued regularly one and IAS 16 does not mention how many years considered as regularly?
I am looking for the similarities between PPE and IP in the measurement models.
As I know, One of the similarities will be PPE and IP both also got cost model (cost-accum depreciation-accum impairment). So, I would like to know is there some more similarities?IAS 16 says “Under the revaluation model, revaluations should be carried out regularly, so that the carrying amount of an asset does not differ materially from its fair value at the balance sheet date”
To achieve that position where fair value is not materially different from carrying value suggests a re-assessment (or, at least, a re-consideration) of those two amounts … how could management be assured that the two values are similar at successive balance sheet dates without conducting this re-assessment
You are correct – regularity is not defined. But common sense suggests “annual”
With reference to the main point of your post – the similarities in the two measurement models – I have to confess that this is something that I have never previously bent my mind to
May I ask why you want to know? It’s hardly likely to come up in an F7 / Financial Reporting exam!
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