Question
Maria Hill Inc. owns a fleet of over 100 cars and 20 ships. It operates in a capital-intensive and thus has significant other property, plant
Maria Hill Inc. owns a fleet of over 100 cars and 20 ships. It operates in a capital-intensive and thus has significant other property, plant and equipment that it carries in its books. It decided to revalue its property, plant and equipment. The companys accountant has suggested the alternatives that follow. Which one of the options should Ostoher Inc. select in order to be in line with the provision of PAS 16?
a) Revalue only one-half of each class of property, plant, and equipment, as that method is less cumbersome and easy compared to revaluing all assets together.
b) Revalue one ship at a time, as it is easier than revaluing all ship together.
c) Revalue an entire class of property, plant and equipment.
d) Since assets are being revalued regularly there is no need to depreciate.
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