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Why would a business choose to use revaluation model to measure PPE?
Wiki User
∙ 11y ago
the ppe value is volatile and fluctuates over a greater range in the market it operates
Wiki User
∙ 11y ago
A business may choose to use the revaluation model to measure Property, Plant, and Equipment (PPE) if it expects the fair value of its PPE to significantly differ from its carrying amount. By using the revaluation model, the business can adjust the carrying amount of its PPE to reflect its fair value and report a more accurate valuation on its financial statements. This can provide a clearer picture of the business's financial position and potentially enhance its financial performance.
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