A first-time shareholder has approached you requesting some advice. The shareholder has received the company's annual report
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Question:
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 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.
Related Book For
Intermediate Accounting
ISBN: 978-0470616314
IFRS edition volume 2
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
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