ScenarioRefer to the article published by The Sydney Morning Herald on 1 April 2019, titled ‘Gerry Harveydefends how retailer values $2.9bn property empire’. A copy of the article has been appended to the‘Assessment 2’ folder under Assessment Zone in vUWS.(1) The article states that ‘Listed companies are required under accounting standards to revalue theirassets regularly.’ Do you believe this would be the case if a listed company chooses to adopt thecost method of revaluation? Provide justifications for your answer.(2) The article mentions that ‘experts have criticised the lack of transparency’ around HarveyNorman’s valuation processes. How could a lack of transparency breach the qualitativecharacteristics of the Conceptual Framework?(3) In the article, there is a statement that ‘under Australian accounting rules, valuation movementscontribute to or detract from a company’s declared profit’. Explain, using examples, how noncurrentasset valuation movements ‘contribute to or detract from’ declared profit.(4) The article describes that Dean Paatsch, from Ownership Matters, is concerned about ‘HarveyNorman’s reliance on director valuations’ for property revaluations. Is reliance on directors’valuations a valid concern? Provide justifications for your answer.Allocate around 850 words for Question 1 and 550 words for each of the remaining three questions. Tosupport your arguments, you have to use:• Authoritative, relevant references,• Relevant accounting standards, and• The AASB Framework.
