Which of the following statements about upward revaluations of long-lived assets is most accurate?
- U.S. GAAP only allows reversal of impairment losses for assets held-for-sale.
- IFRS only allows increases in the value of long-lived assets to the extent of previously recognized revaluation losses.
- Under IFRS, reversal of revaluation loss does not affect shareholders’ equity.
Answer: A
Under IFRS, upward revaluations do impact shareholders’ equity (either directly through the revaluation surplus) or indirectly (through the income statement). Further, under IFRS, revaluations may take the value of an asset beyond its historical cost
Thought B is the answer. Can someoe explain any further why A is the answer