Under the Revaluation Standard, Upward Valuations of Assets Are Allocated

Multiple Choice

Under the revaluation standard, upward valuations of assets are allocated directly to a reserve (equity) account and do not increase profit, while downward revaluations are treated as an expense and reduce profit. The accounting principle underpinning this treatment is:

A) accounting entity.
B) prudence (conservatism) .
C) going concern.
D) materialism.