A lady who owns a company has decided to revalue her land assets to their current value as she has recently been approached by a firm to sell.

The current assets were acquired many years ago and still recorded at cost. The assets fall under the following categories:

Orchards (at several locations) that produce apples for sale via the Hobart fresh produce market or for use in the production of apple juice

Land located next to the main orchard, where apple juice production and storage takes place in a building located there

An unused parcel of land on a hillside overlooking near Valley

The client believes increasing these assets values will bolster the balance sheet to improve the position in potential negotiations.

You have to provide advice regarding possibility of revaluing some or all the land assets.

At the start of each section of the report, you are required to provide an exact quote of each paragraph of an accounting standard, or each section of legislation, referred to in that section of the report. You need to focus on Conceptual framework and AASB 116.

• What are the issues
• Apply the requirements of relevant accounting standards
• Describe any other relevant factors that need to be considered
• Describe and justify the advice you suggest to be given to the client.