What must be included in the subsequent measurement of PPE, according to IAS 16?

The subsequent measurement of Property, Plant, and Equipment (PPE) under IAS 16 can be approached using two distinct models: the cost model and the revaluation model. This flexibility allows entities to choose the method most appropriate for their financial situation and business needs.

Under the cost model, PPE is carried at its cost less any accumulated depreciation and impairment losses. This model emphasizes the historical cost of the asset, which reflects the price paid at acquisition, adjusted for subsequent depreciation.

On the other hand, the revaluation model allows for the asset to be recorded at its fair value at the date of revaluation, less any subsequent accumulated depreciation and impairment. This model can provide a more current valuation of the assets, reflecting their market conditions and usage potential.

Including both models in subsequent measurement gives entities the option to report their assets in a manner that can either highlight stability (through the cost model) or reflect current market conditions (through the revaluation model). This dual approach aligns with the principle of providing relevant financial information that meets the needs of users of the financial statements.

The other options represent limitations or exclusivities that do not capture the comprehensive approach prescribed by IAS 16, thus making them less suitable as answers in this context.