A company has a piece of land that has appreciated significantly in value. How might GAAP and IFRS differ in reporting this asset?

• A. Neither GAAP nor IFRS would allow revaluation to fair value
• B. Both GAAP and IFRS would require revaluation to fair value
• C. GAAP may allow revaluation to fair value, while IFRS would keep it at historical cost
• D. IFRS may allow revaluation to fair value, while GAAP would keep it at historical cost

Answer: (D)