$1.$ In what way does IFRS differ from US GAAP concerning fixed asset measurement subsequent to initial recognition?

a$.$ IRS allows for upward adjustment of the asset value.

b$.$ IRS does not allow for accumulated depreciation.

C$.$ IFRS requires that fixed assets be carried at fair value.

d$.$ IRS allows for downward adjustment of the asset value.

$2.$ The following information about a machine was taken from the records of Friends & Co$.$

as of December $31,2021,$ prior to any year$-$end adjustments.

Book Value

Current Selling Price

$100,000$

$85,000$

Expected future cash flow

PV of future cash flow

Straight$-$line Depreciation Expense

$75,000$

$63,000$

$5,000$

Assume Friends & Co$.$ elects the fair value reporting option for assets when available.

a$.$ Under IFRS, by what amount should the fixed asset book value be adjusted?

Lion

b$.$ Where does the adjustment in $($if any$)$ in part A impact the financial statements?

c$.$ Under US GAAP, by what amount should the fixed asset book value be adjusted?

d$.$ Where does the adjustment in $($if any$)$ in part C impact the financial statements?

e$.$ For the year ended December $31,2021,$ which valuation method provides larger net income?

$3.$ Why might a company choose not to use revaluation accounting?