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How is the international accounting treatment for changes

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Problem - International Financial Reporting Standard No. 16 provides companies the option of valuing property, plant, and equipment at either historical cost or fair value. If fair value is selected, then the property, plant, and equipment must be revalued periodically to fair value. Under fair value, if there is an increase in the value of the property, plant, and equipment during the reporting period, then the increase is credited to stockholders' equity. However, if there is a decrease in fair value, then the decrease is reported as an expense for the period. How is the international accounting treatment for changes in fair value for property, plant, and equipment similar to investments?

Reference no: EM132692364

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