Asked by Nikita Verma on Jul 14, 2024
Verified
IFRS allows two different models for accounting for long-lived tangible assets: the cost method and appraisal method.
Cost Method
An accounting method used for investments, where the investment is recorded at cost and adjustments are only made for impairments or additional investments, without recognizing unrealized gains or losses.
Appraisal Method
An evaluation process to determine the value of an asset, often used for real estate and investments, based on various criteria.
IFRS
International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that serve as a global framework for financial statements.
- Recognize the distinctions and parallels when accounting for long-lived assets in accordance with IFRS and U.S. GAAP.
Verified Answer
ZK
Zybrea KnightJul 14, 2024
Final Answer :
False
Explanation :
The second method under IFRS is the revaluation method.
Learning Objectives
- Recognize the distinctions and parallels when accounting for long-lived assets in accordance with IFRS and U.S. GAAP.