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Non-current assets: Disposal, revaluation and impairment

Revaluation

1.1 Models

IAS 16 Property, Plant and Equipment permits entities to account for tangible non-
current assets at either:

 cost

 fair value.

The cost model is in line with what was covered in Chapter 5, in which
the non-current asset is carried at cost less accumulated depreciation.

The fair value of an asset is usually its market value – i.e. the price in
which it could be sold for at a given point in time.

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