ACCA考试科目P7 A change in accounting policy – risk question

ACCA考试科目P7 A change in accounting policy (Reval to cost model) – risk question


what is the financialstatement risk that arises when the question mentions that the

management wishto change the accounting policy from revaluation model to cost model under

IAS16?
Any past year questionthat test on this before?

Following risk can be arised:
1. Risk relating to revaluation reserve , reversing of all the revaluation reserve.
2. The depreciation charged while using revaluation model.
3. The cost on which the asset was actually bought.
4. The corresponding figures need to be adjusted.
5. Why management is shifting the policy from revaluation model to cost model is their too

much decline in the values of company’s fixed asset.
6. The risk of impairment losses.