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The Balance Sheet Treatment of Property, Plant, and Equipment (IAS 16)  


Author:  Cenap Ilter.


Source: Volume 39, Number 01, Fall 2021 , pp.13-25(13)




Journal of Taxation of Investments

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Abstract: 

Revaluation is the answer to the abrasive effect of inflation on the cost of fixed assets. It should be done on all fixed assets, even those for which there is no ready market and level 1 or level 2 input data are not available. But revaluation should be used only if it is possible to measure the fair value of an asset reliably. For some property, plant, and equipment (PP&E) items it may be impossible to determine fair value. For such a fixed asset, revaluation may be unrealistic.

Keywords: International Accounting Standards 16; fixed assets; revaluation; inflation adjustment; fair value

Affiliations:  1: California State University Dominguez Hills.

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