James Cook Plc bought a piece of land 10 years ago and the market value of this property is now worth five times its purchase cost.The accountant suggested that James Cook Plc should revalue the asset.This notion is consistent with the qualitative characteristic of:
A)relevance.
B)faithful representation.
C)understandability.
D)comparability.

Question

Quizplus · Accepted Answer

The notion of revaluing the property is consistent with the qualitative characteristic of relevance because it could potentially impact the decision-making of the users of the financial statements. By reflecting the current market value, the company's financial position and performance could be perceived differently by investors, creditors, and other stakeholders.

James Cook Plc Bought a Piece of Land 10 Years