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ACCA Applied Knowledge · Financial Accounting · Tangible non-current assets

Orion Co uses the revaluation model for all its land and buildings. Which of the following is a required disclosure where an asset class has been revalued?

Orion must disclose the effective date of the revaluation and whether an independent valuer was used, along with the movement on the revaluation surplus. IAS 16 requires these so users can judge the reliability of the valuation; the other items are not required.

  1. AThe effective date of the revaluation and whether an independent valuer was involvedCorrect
  2. BThe personal qualifications of the directors who approved the valuation
  3. CThe amount of tax saved by revaluing the asset
  4. DThe original supplier's invoice number

Explanation

IAS 16 requires disclosure of the effective date of the revaluation, whether an independent valuer was involved, and the revaluation surplus movement with any restrictions on distribution to shareholders. The other items are not required.

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