1) Total marks: 10 marks

Mr Howe a junior partner of CPA fir, Dewey, CHeatem and Howe (DCH) is very excited about the opprtunities created by fair value relvaluation of non current assets. hr believes that there is an enormous opportunities 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.