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A first-time shareholder has approached you requesting some advice. The shareholder has received the company's annual report and noticed the following statement in the summary
A first-time shareholder has approached you requesting some advice. The shareholder
has received the company's annual report and noticed the following statement in the
summary of significant accounting policies:
'The financial report has been prepared on the basis of historical cost, except for the
revaluation of certain non-current assets which is explained in the notes.'
Required
Explain to the shareholder why this statement is included in the accounting policy note.
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