ng Theory: Research and Practice-Block B T2/2021 Question 6 - A Assume that Australasia Company Ltd decides to undertake an upward revaluation of its non-current assets just prior to the end of the financial year, the effect is that the total assets of the company increase, as does the total shareholders' equity. a) Explain management's decision to undertake an asset revaluation in terms of the debt hypothesis of Positive Accounting Theory? 1 A B I ili III ITI Iml 2 go g Theory: Research and Practice-Block B T2/2021 Question 6 - B Assume that Australasia Company Ltd decides to undertake an upward revaluation of its non-current assets just prior to the end of the financial year, the effect is that the total assets of the company increase, as does the total shareholders' equity. b) Explain the decision of management to undertake an asset revaluation in terms of the management compensation hypothesis of Positive Accounting Theory? 2 . B I = E $$ P