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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AAA Exams › property revaluations P7 December 2011 Q2b
hello mike
hope you are well
i read the examiner solution for the change in accounting policy in property revaluations in the above question. the examiner suggested in the solution that the discussion with the audit committee should be around the consequences of measuring the asset at fair value which are basically increased depreciation and effect on audit fees because they might have to bring an external valuer to verify the managements revaluation.
i agree with all this but just wondering why the examiner solution did not mention the consequences of IAS 8 change in accounting policy where have to restate comparatives and adjust the opening balance. inst that applies here as well in the case of revaluation?
the earlier policy of the company was to measure the asset at cost.
if i had mentioned this then would i have had gained points?
Without looking at the question (nor answer) your’s sounds like a fair point to make
Good thinking