Question: A first-time shareholder has approached you requesting some advice. The shareholder has received the companys annual report and noticed the following statement in the summary

A first-time shareholder has approached you requesting some advice. The shareholder has received the companys annual report and noticed the following statement in the summary of significant accounting policies:

The financial report has been prepared on the basis of historical cost, except for the revaluation of certain non-current assets which is explained in the notes.

Required

Explain to the shareholder why this statement is included in the accounting policy note.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Question 1 (3 marks) A first-time shareholder has approached you requesting some advice. The shareholder has received the company's annual report and noticed the following statement in the summary of...

Question 1 A shareholder of a company in liquidation was told 'Creditors are to be paid in full but there is insufficient funds to pay out all contributories.'.The shareholder is unsure of what this...

A first-time shareholder has approached you requesting some advice. The shareholder has received the company's annual report and noticed the following statement in the summary of significant...

urgent !!! plz Measurement basis used A first-time shareholder has approached you requesting some advice. The shareholder has received the companys annual report and noticed the following statement...

A first-time shareholder has approached you requesting some advice. The shareholder has received the companys annual report and noticed the following statement in the summary of significant...

A first-time shareholder has approached you requesting some advice. The shareholder has received the company's annual report and noticed the following statement in the summary of significant...

Measurement basis used A first-time shareholder has approached you requesting some advice. The shareholder has received the companys annual report and noticed the following statement in the summary...

A first-time shareholder has approached you requesting some advice. The shareholder has received the companys annual report and noticed the following statement in the summary of significant...

A first-time shareholder has approached you requesting some advice. The shareholder has received the company's annual report and noticed the following statement in the summary of significant...

The following questions deal with issues related to executive compensation: a. What is the business judgment rule and how does it relate to executive compensation? b. On August 9, 2005, Chancellor...

You are in charge of a new product launch. This will be a formal press launch, where the product is introduced by your managing director and the press and major customers have the opportunity to see...

What is a letter of comfort and why is it provided? Is it necessarily legally enforceable? Refer to Banque Brussels [4.200].

2. Critically evaluate the relative effectiveness of on-the-job training and off-the-job training.

identify when to use a variety of learning and development techniques

1. Many organisations do not provide an adequate induction programme for new employees. Comment critically on the benefi ts to be gained from implementing a good induction programme, and outline what...