FINANCIAL ACCOUNTING IN THE NEWS Assets understated by fruit company Leonie Wood The Australian Financial Review, 21
Question:
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Required: Read the above article by Leonie Wood called ?Assets understated by fruit company? in Financial Accounting in the News 6.1, which details a case where directors elected not to revalue the company's assets. Then answer the following questions:
a.What might have motivated the directors not to revalue the plant and equipment? | ||
| b.What effects will the decision not to revalue have on the firm's financial statements? | ||
| c. Would the decision not to revalue adversely affect the wealth of the shareholders?
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