Valuation consistency under the revaluation model requires what?

• A. If using the revaluation model, all assets in the same class must be revalued using the same method.
• B. Revaluations can be done on an asset-by-asset basis within the class.
• C. Revaluation is optional every year but must be performed if chosen.
• D. Only if market conditions warrant.

Answer: (A)

When you apply the revaluation model, you must keep assets within the same class aligned in how they are valued. If you choose to revalue, you revalue every asset in that class and use the same measurement basis for all of them. This prevents selective reporting and ensures that carrying amounts across the class move together in line with fair value. In practice, you would revalue the entire class to fair value at appropriate intervals, using the same method for each asset in that class, so the reported value remains consistent over time.

Options suggesting revaluing assets individually within the class, or making revaluations optional or solely market-driven, don’t meet this consistency requirement.