Accounting for IGCSE & O level - Accounting Procedures (Section 3 - No. 20)
What is the accounting treatment for the revaluation method?
The asset is written down to its historical cost.
The asset is written up or down to its fair value.
The asset's value is not changed, but accumulated depreciation is adjusted.
A new asset is created and the old asset is derecognized.
Explanation
The revaluation method adjusts an asset's value up or down to its fair value.
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