Which of the following is/are required for disclosure of revalued assets in a company's financial
statements?
(1) The methods and significant assumptions applied in estimating the value
(2) Whether an independent valuer was involved in the valuation
(3) How certain the directors are that the valuation will not change in the next five years
O 1only
O 1 and 2 only
O 2 only
O All three are required
The correct answer is (1) and (2). But disclosure about revalued assets in study book i didn't see (1)..Question from Bpp study book. Correct answer is (1) and (2) or only (2) ? If (1) is also true what does it mean? Thanks in advance for your help
Ask the Tutor ACCA FA
IAS 16
2y ago#1The correct answer is indeed (1) and (2).
What it means is that any new value placed on an asset is only an estimate (we only ever know the exact 'true' value when an asset is actually sold) and so assumptions have to be made in estimating what the current value is.
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