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State whether each of the following statements is true or false.
Statement 1 If the revaluation model is used for property, plant and equipment, all items of property, plant and equipment must be subject to revaluation.
Statement 2 When an item of property, plant and equipment is revalued, it is compulsory to make the annual transfer of excess depreciation within equity.Why both are false according to me 1 should be true
It is false because although you must revalue all similar items (so for example all equipment) you do not then have to revalue the others (so if all equipment revalued you don’t have to revalue property).
Ias 16 says that if one item in a class of asset is revalued,all the assets in that class must be revalued so why statement 1 is false
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