X Ltd has a piece of land in Auckland that it purchased for $1000000 ten years ago. Land price increased significantly in recent years in Auckland. The CEO is particularly interested to show the land at its current market price, which is $3000000 and asks the CFO whether the conceptual framework for financial reporting permits it
QUESTIONS: Briefly explain whether the Conceptual Framework permits the reporting of the land at its current market price.
State (in bullet points) one advantage and one disadvantage of reporting the land at its current market price.
State (in bullet points) one advantage and one disadvantage of reporting the land at its historical cost.