CFA Practice Question

There are 520 practice questions for this study session.

CFA Practice Question

Under IFRS, an asset revaluation ______
A. always affects earnings.
B. affects earnings if the revaluation initially increases the asset's carrying value.
C. affects earnings if the revaluation initially decreases the asset's carrying value.
Explanation: If the revaluation initially increases the asset's carrying value then the increase bypasses the income statement and goes directly to equity.

User Contributed Comments 1

User Comment
twintigers if revaluation decreases the carrying value, the difference will go to loss of current period.
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