Question: Question 2- Assume that Co. A elects to revalue its long-term assets under IFRS, What effect will this have on the following ratios in future

Question 2- Assume that Co. A elects to revalue its long-term assets under IFRS, What effect will this have on the following ratios in future periods: Briefly explain why. + Increase decrease or no change 1- Profit margin 2- Asset turnover 3- Return on assets 4- Return on equity 5- Debt ratio 6-Currebt ratio 7- Why would a company not be willing to elect the revaluation method?

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!

Case study: (50 marks) -PART A On 1 July 2021, Tom Ltd acquired all the shares of Hanks Ltd on an ex-div . basis. Tom Ltd paid $850,000 cash and issued 120,000 shares which had a fair value of $5.00...

Please answer all questions on answer sheet. Please be concise and do your own work SHOW ALL WORK. Be concise and clear with your answers. Q1- Corp X has 50 units in beginning inventory with a cost...

Q1- Corp X has 50 units in beginning inventory with a cost of $300. During the year purchases were made as follows: January 15- 100 units @ 5.75 per unit June 15- 100 units @ 5.50 per unit October...

Assume that Co. A elects to revalue its long-term assets under IFRS, What effect will this have on the following ratios in future periods: Briefly explain why. + Increase decrease - or no change...

Assume that on July 1, 2020 Co. Person X purchase an asset for 100,000 and has a 3-year useful life with estimated salvage value of 20,000. Person X uses the double declining method to account for...

I need to find out if I'm on the right track with this assignment and and explanation on what vertical and horizontal analysis are. I don't understand some of the questions and have marked them in...

Multiple Questions (2 points per question) 1. On a common size basis, which of the following assets is normally largest for a commercial bank? a. Accounts and Notes Receivable b. Inventory c....

"DISCUSS THE EFFECTS OF COVID 19 ON LABOR MARKETS AND THE ECONOMY" Provide an introduction and the background of your study, and clearly state what your research question or objective is. What real...

Please find attached financial statements for Apple Inc, Samsung Inc. and word document that contains template and question. (for Samsung Inc, you can use the information from page 4 to 14). 1....

I've attached the question as a word file, thanks! JWCL165_c12_568-611.qxd 8/12/09 8:29 AM Page 568 12 Investments Chapter STUDY OBJECTIVES After studying this chapter, you should be able to: 1...

You are performing a price test of inventory, which has a book value of $2,750,699 and 3,875 items. Tolerable misstatement is $150,000, expected misstatement is $30,000, and the TD risk is 10%....

The following are the numbers of words per minute that a secretary typed on several occasions on four different typewriters: Use the computing formulas of Exercise 15.4 to calculate the sums of...

A capital expenditure budget does NOT include: Extraordinary repairsOrdinary repairsRenovationsModifications

Reduce the block diagram shown in Figure P5.9 to a single transfer function, T(s) = C(s)/R(s). Figure P5.9 G1 C(s) R(s) G2 G5 G6 G3 G4 G7

Reduce the block diagram shown in Figure P5.6 to a single block, T(s) = C(s)/R(s). G8 C(s) R(s) G1 G5 G6 G2 G4 G7 G3 FIGURE P5.6

At which of the lettered positions would an observer be able to see the image of the dot in the mirror? A B D E

Nickel-65 beta decays by electron emission with decay constant l = 0.275 h -1 . (a) Identify the daughter nucleus. (b) In a sample of initially pure Ni-65, find the time when there are twice as many...

Priscilla is being sued in small claims court by her landlord for past due rent. Just wait, she exclaims. Once I get in front of that jury, they wont award him the money. After all, he shut off the...

Create a 200 word summary on the Juvenile Justice System than and today. Describe The Juvenile system and provide a generalizable definition. Highlight the issues in the Juvenile system and why this...

Dropping Product Lines: New England Ski Company is presently operating at 75 percent of capacity. Worried about the company's performance, the president is considering dropping the company's line of...

Cost AnalysisMake or Buy with Opportunity Costs: Refer to the facts in exercise 12-21. If Sam suddenly finds an opportunity to rent out the unused capacity of his factory for $80,000 per year, would...

Cost Analysis for Make-or-Buy Decision: Sailsport purchases sails and produces sailboats. It currently produces 1.000 sail- boats a year, operating at 70 percent of capacity. Currently, Sailsport...