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Hello
I was going through this question and now I am confused.The company decided to revalue their manufacturing sites. In the suggested solution, it begins by saying that the decision to revalue creates SEVERAL RISKS, and it goes on to mention a number of them such as revaluation can be a subjective exercise, leading to inherent risk that the valuation may not be appropriate.
It also says if an item of PPE is revalued all the items in that class should be revaluated.
The model answer also talks about depreciation and it ends by talking about disclosure requirements of IAS 16, as separate risks or maybe I have misunderstood the answer.
My question is, if the marking scheme says 2 marks for each risk evaluated and I wrote all those risks, will I be awarded only 2 marks or it will be 2 marks for each individual risk identified?It’s all one risk area (“revaluation”) but the marks would not be capped at just 2 – but maybe 4, say. The marking scheme is a guide and you should interpret the mark allocations to be “generally up to …”. Note that in general it is the evaluation that is worth 2 marks (i.e. more than simply identification).
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