Question 2 20 marks A. What, if anything is the difference between cost, recoverable amount and fair value and why is this important in relation to non-current assets? 4 marks B. How is 'impairment of an asset' different from 'amortisation of an asset'? Give an example that enhances your explanation. 2 marks C. Describe three incentives that management might have to revalue assets? 3 marks D. Who should be responsible for providing valuations on which to base revaluations and how should they be derived? What are the disclosure requirements for these valuations? 3 marks E. Mattamax Ltd owns two buildings acquired in 2016 for the purpose of future development. Building A cost $290,000 and Building B cost $330,000. Valuations of the blocks are undertaken by an independent valuer on 30th June 2018 and 2020. The assessed values are as follows: 2018 valuation $ 2020 valuation $ Building A 270,000 310,000 Building B 350,000 320,000 (a) Provide the journal entries for the revaluations that were undertaken in 2018 and 2019 for the buildings. 6 marks (b ) What might the economic consequence of asset revaluations be for the business? 2 marks