Discuss cost basis method and fair value method in relation to relevance & reliability information

What factors should entities consider in choosing alternative measurement models? Under the revaluation model, how is a revaluation increment accounted for? Under the revaluation model, how is a revaluation decrement accounted for? Under the revaluation model, how is a revaluation decrement accounted for?

Discuss the cost basis method and the fair value method in relation to the relevance and reliability of information. Current information is generally more relevant than past information. Determination of cost is generally more reliable than determination of fair value.

Discuss the trade-off between relevance and reliability, that is, as information becomes less reliable it also loses its relevance. A fair value measure may, because of its timeliness, be more relevant but if the measure becomes more unreliable, the relevance of the information decreases.