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If FV increase is given in question under COST model IAS16 PPE

This topic has 1 reply, 2 voices, and was last updated 9 years ago by seagoat.

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May 22, 2016 at 7:21 pm #316471
faraz6326
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In any case, do we revise the carrying value if FV is in excess of CV and question says entity has adopted cost model? In Cost model can we take CV ahead to FV
May 23, 2016 at 11:03 am #316566
seagoat
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If the entity has adopted cost model then you not only can but must take CV.
The company can switch to FV model but then whole class of assets to which that asset belongs to must be revalued on a regular basis.
At least this is what I remember.
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