Which model can be used under IFRS for determining carrying value of assets?

Under IFRS, the carrying value of assets can be determined using either the cost model or the revaluation model, providing flexibility to entities in how they choose to report their assets.

The cost model allows an asset to be carried at its historical cost less any accumulated depreciation and accumulated impairment losses. This approach is straightforward and commonly used, particularly for tangible and intangible assets.

On the other hand, the revaluation model permits companies to carry assets at their fair value, which must be revalued regularly to ensure that the carrying amount does not differ materially from fair value at the end of each reporting period. This model is particularly useful for certain categories of assets, such as property, plant, and equipment, as it reflects more current market conditions and can provide more relevant information to users of financial statements.

Therefore, the ability to choose between these two models allows entities under IFRS to select the reporting method that best reflects the nature of their assets and their financial reporting goals. This dual approach underlines IFRS's emphasis on fair presentation and relevance in financial reporting.