Which model can be chosen for subsequent measurement of intangibles under IAS 38?

Under IAS 38, entities have the option to choose between two models for the subsequent measurement of intangible assets: the cost model and the revaluation model.

The cost model allows an entity to carry the intangible asset at its cost less any accumulated amortization and any accumulated impairment losses. This model is straightforward and widely used, as it reflects the historical cost of the asset and provides consistency in financial reporting.

On the other hand, the revaluation model permits an entity to measure its intangible asset at fair value, provided that fair value can be determined by reference to an active market. If an entity opts for the revaluation model, all revaluations must be conducted regularly to ensure that the carrying amount does not differ materially from its fair value. This model can provide more relevant information, especially for intangible assets that appreciate in value over time.

The choice between these two models allows for flexibility in financial reporting, reflecting the entity's circumstances and management's judgment regarding the nature of the intangibles held. Thus, the correct answer highlights that both the revaluation model and the cost model are valid options under IAS 38 for the subsequent measurement of intangible assets.