Con Fused Ltd is seeking your assistance in the presentation of their profit figure for the year ended 30 June 2022. The Annual Report notes that the company adopts the Historical Cost basis for measurement except for certain classes of plant and equipment that are measured at Fair Value. The following table compares the profit on the basis of historical cost and fair value:

Account	Historical cost $	Fair value $
Net profit before depreciation	78 670 000	78 670 000
Depreciation Plant	20 000 000	42 000 000
Depreciation Equipment	5 000 000	17 000 000
Net profit (loss)	53 670 000	19 670 000

Required:

Discuss which profit  you would recommend be reported based on the Conceptual Framework qualitative characteristics of relevance and faithful representation.

Answer rating: 100% (QA)

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