Under ASPE, which model can be used for revaluation?

Under the Accounting Standards for Private Enterprises (ASPE) in Canada, the framework primarily supports the cost model for the measurement of property, plant, and equipment. The cost model allows organizations to recognize assets at their historical cost less any accumulated depreciation and impairment losses. This model is simpler and provides more straightforward financial reporting as it avoids the complexities of measuring fair value, which can fluctuate and may introduce subjectivity into financial reporting.

The revaluation model, which can be used under International Financial Reporting Standards (IFRS), is not an option under ASPE. This means that organizations that follow ASPE cannot adopt the revaluation model to measure their assets, as it allows assets to be updated to their fair value at revaluation dates, potentially leading to more volatility in asset values on the balance sheet.

Thus, the statement that only the cost model can be used under ASPE is accurate, as this is the prescribed method for financial reporting in that context.