Question

IFRS are based on
a) historical cost
b) fair value
c) both historical cost and fair value
d) None of these.

Answer 1

Answer:

b) both historical cost and fair value

Explanation:

As per Indian GAAP, in India, we are following historical based accounting. However, IFRS, at the global level, requires fair value based accounting. Depreciation on the fixed asset is getting calculated on historical cost while Impairment on the assets is getting derived based on their fair value.

Hope it helps : )