Answer: Question Two: (10 marks) Fragrance plc has owned a factory building for many years. The building is recorded in the statement of financial position (balance sheet) at $250,000, being historical cost of $300,000 less accumulated depreciation of $50,000. The recent report of a professional valuer indicated that the property is valued at $380,000 on an open market basis for its existing use. Explain the effect this information will have on the reported financial statements. * who decide to do the revaluation? show on which statement? (BS/CF/IS); *what's the amount? belongs to which accounting part? (asset/liability/equity); * the difference between the previous recorded book value and the new value; * the amount (if you figure out the above*, you will be confident to say) increase/decrease in where? * this 'amount' will be reported as X ?