________________ is the owner of _______________Pty Ltd. This company operates several orchards in Tasmania and makes apple juice from sub-retail quality apples. ________________ has been approached by __________________ Ltd, a company listed on the ASX, in relation to selling the company to them. ________________ has approached your accounting practice for advice regarding the possibility of revaluing some or all the land assets to better reflect their current value in the balance sheet. Some assets were acquired many years ago and are still recorded at cost. He/she believes increasing these asset values will bolster the balance sheet to improve his/her position in potential negotiations with _________________ Ltd.

The landholdings of _______________________ Pty Ltd fall into three categories:

1. Orchards (at several locations) that produce apples for sale via the Hobart fresh produce market or for use in the production of apple juice

2. Land located next to the main orchard, where apple juice production and storage takes place in a building located there

3. An unused parcel of land on a hillside overlooking ________________ Valley (acquired with the intention of building a weekend visitor centre for orchard tours, up market apple-based products, coffee shop and on-site accommodation for tourists) He/she has approached your firm to seek advice on the plan to revalue land assets to their current value and advice in relation to the potential sale of the company.

Required: Identify the issues for this client, identify and apply the requirements of relevant accounting standard/s, identify any other relevant factors and justify the advice to be provided to the client.

Please provide issues relating to the above case and explain through the AASB 116 and other Australian Accounting Standards relating to the above issues.