Revision question on IAS 16

Once an entity has recognized an item of Property, Plant and Equipment as an asset in its books, the entity can choose between two models (or methods) to account for the asset in subsequent measurement periods, that is, the period(s) after the asset has been acquired and before its disposition. The two models are the cost model and the revaluation model. The entity shall apply the same model to the entire class of property, plant and equipment to which that asset is of similar nature and use in the entity’s operations.


Identify TWO differences between the cost and revaluation model for the measurement of Property, Plant and Equipment.

Leave a Comment

Your email address will not be published. Required fields are marked *

%d bloggers like this: