Crane Ltd has proposed that the company adopt the revaluation model for fixed assets. Some of these assets are hard to obtain and certain items have increased in value in the current period, however it is difficult to know what their fair value is. The director is arguing that fair value will improve the 'look' of the company's statement of financial position, and may eliminate the need for depreciation.

Required 

Prepare a report to the board on whether it should adopt the director's proposal.