An accounting rule that an entity applies to govern specific classification and measurement considerations in all cases, excluding a substantiated case that can be made to rebut/ invalidate that rule (i.e., unless it is proven untrue).

For example, a rebuttable presumption can be created to the effect that a fair-valued investment property will be recovered (and hence, de-recognized) entirely by sale. The presumption would be rebuttable and can be rebutted if the investment property is held for the purpose of extracting all its economic benefits over time (useful life), rather than by means of sale before the end of its useful life. However, the presumption cannot be rebutted for a property held for sale (an investment property such as a plot of land), because in which case the property can only be recovered through sale.

The rebuttable presumption would also apply to deferred tax liabilities or assets that are created upon acquisition of investment properties in a business combination, if the acquiring firm subsequently applies the fair value model for such properties. The assumption that the property is recovered by sale will be used as a measurement basis for such tax assets or liabilities.