1. f any gain or losses arising from the valuation of liabilities are reported in the income statement and the gain and losses derived from the revaluation of assets are recognised under equity in the balance sheet, what is the effect on the financial statements (both income statement and balance sheet).
2. What is the impact on the financial statement of position (i.e. balance sheet ) when assets are recorded at historical cost and liabilities are recorded at fair value. Also analyse the impact on the equity section.