Mr. Howe, a Junior Partner of the CPA firm Dewey, Cheatem, & Howe (DCH), is very excited about the opportunities created by fair-value revaluation of non-current assets. He believes that there is an enormous opportunity for large firms to increase their book profits via the gains from such revaluations.
Required:
Mr. Tu Dewie has asked you to review the AASB rules on the fair-market revaluation of non-current assets and to assess what profit enhancing opportunities may arise because of those rules.
NB: please remember that while Mr. Dewey is the senior partner of DCH, Mr. Howe (as a junior partner) can hurt you if you are not polite and considerate.