Question 2: Al Faizaan LLC is a leading company in manufacturing confectionaries in the sultanate of Oman. The company has completed seven years since inception. Currently, the company is following historical cost method for preparing its financial statements because the company believes that there is less scope for errors or frauds under this method. The higher authorities in the company feels that the assets of the company which were purchased seven years are shown at the same values after providing depreciation every year on straight line method basis. And the values do not represent the actual market values. So the company wishes to restate the financial statement to its current values. So that the financial statements show true value of the business. a. Which are the methods available for restating the financial statements to the current values. Which is the best method according to you to restate the financial statement? Give (2 marks) b. Do you think that the company has taken right decision to restate the financial statements to curre values? Give reasons. (2 marks) c. Compare and contrast the suitability of the two popular approaches of inflation accounting to AL Faizaan LLC (2 marks) d. Prepare a balance sheet with imaginary opening and closing assets, liabilities and equity values on historical basis (4 Marks) e Restate the above balance sheet under current purchase power method with the above historical balance sheet (5 Marks) + Page 4 - Q PAwie M @ OK x]