WA21-3 Ali Reiners, a new controller of Luftsa Corp., is preparing the financial statements for the year ended December 31, 2011. Luftsa is a publicly traded entity and therefore follows IFRS. As a result of this review, Ali has found the following information. 1. Luftsa has been offering a loyalty rewards program to its customers for about five years. In the past, the company has Ethics not recorded any accrual related to the accumulated points as the amounts were not significant. However, with recent changes to the plan in 2011, the loyalty points are now accumulating much more rapidly and have become material. Ali has decided that effective January 1, 2011, the company will defer the revenue related to these points at the time of each sale, which will result in a liability. 2. In 2011, Luftsa decided to change its accounting policy for depreciating property, plant, and equipment to depreciate based on components and also to adopt the revaluation model. The company hired specialized appraisers at January 1, 2011, to determine the fair values, useful lives, and depreciable amounts for all of the components of the assets. In