Assume that Co. A elects to revalue its long-term assets under IFRS, What effect will this have on the following ratios in future periods: Briefly explain why.

+ Increase

decrease -

or no change

1. Profit margin
2. Asset turnover
3. Return on assets
4. Return on equity
5. Debt ratio
6. Current ratio
7. Why would a company not be willing to elect the revaluation method?

Answer rating: 100% (QA)

When a company elects to revalue its longterm assets under International Financial Reporting Standards IFRS it can have various effects on the following ratios in future periods 1 Profit Margin The ef... View the full answer