Entities A and B are identical in all respects, except for their application of IAS 16 Property, Plant and Equipment. Entity A accounts for buildings using the cost model whereas Entity B uses the revaluation model. Property prices have risen recently and so Entity B recorded a revaluation gain at the beginning of the current reporting period. Extracts from the financial statements of both entities are provided below: Statements of profit or loss (extracts) Revenue Operating costs (including depreciation) Profit from operations Statements of financial position (extracts) A B $000 $000 220 220 (180) (210) 40 10 Share capital Retained earnings Other components of equity A B $000 $000 50 90 581 50 60 210 Total equity 140 320 Borrowings 100 100 Total equity and liabilities 240 420 Required: Using ratio analysis, compare the financial statements of Entity A and Entity B and explain how the differences may impact stakeholder perception.