QUESTION 4 a) A company which uses the revaluation model and prepares financial statements to 31 December each year acquired a building on 1 January 2014 at a cost of 5 million. The building has an estimated useful life of 50 years and nil residual value. On 31 December 2017, this building was revalued at 4.8 million. The company uses the straight-line method of depreciation for all its depreciable tangible non-current assets. Required: (i) Explain how this revaluation should be accounted for, including in detail which accounts will be affected and by how much. 5 marks (ii) Assume that on 31 December 2017 the building was revalued at 4 million instead. Under this scenario, explain how this revaluation should be accounted for, including in detail which accounts will be affected and by how much. 5 marks b) A companys investment property at 31 December 2017 is shown in the statement of financial position at its fair value of 12 million. Explain the accounting treatment which should be applied in the financial statements for the year to 31 December 2018 if the property has risen in value by 10% during the year. Also, explain the accounting treatment if the property has fallen in value by 10% during the year. 4 marks c) There is one high-level difference between IFRS and US GAAP in the way they approach accounting regulation. Name and explain this difference and briefly discuss its implications for financial reporting. 6 marks