Under the revaluation model of asset valuation, assets are carried at:

• A. Historic cost less accumulated depreciation
• B. Fair value less subsequent accumulated depreciation
• C. Replacement cost
• D. Net realizable value

Answer: (B)

Under the revaluation model, you update the asset’s carrying amount to its current fair value at the date of the last revaluation and then deduct depreciation that has accrued after that date. In other words, the asset is carried at fair value less subsequent depreciation. This approach keeps the carrying amount aligned with current value while recognizing wear and tear from the revalued base onward. It differs from the historic cost model, which uses cost less accumulated depreciation; replacement cost and net realizable value are not the standard ongoing measurement bases for property, plant and equipment under IFRS.