Reference no: EM132569676

Question 1: Which statement is incorrect concerning revaluation of property, plant and equipment?

Select one:

a. When an item of property, plant and equipment is revalued, the entire class of property, plant and equipment to which that asset belongs should be revalued.

b. The basis of revaluation is fair value which is usually the market value determined by appraisal undertaken by professional qualified valuers, or depreciated replacement cost, in the absence of evidence of market value.

c. Frequent revaluations are unnecessary for items of property, plant and equipment with only insignificant movements in fair value and instead, revaluation every five to ten years may be sufficient.

d. Items of property, plant and equipment that experience significant and volatile movements in fair value should be revalued annually.