Discuss which profit figure you would recommend be reported

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Question - Con Fused Ltd is seeking your assistance in the presentation of their profit figure for the year ended 30 June 2022. The Annual Report notes that the company adopts the Historical Cost basis for measurement except for certain classes of plant and equipment that are measured at Fair Value. The following table compares the profit on the basis of historical cost and fair value.

Account

Historical cost $

Fair value $

Net profit before depreciation

78,670,000

78,670,000

Depreciation Plant

20,000,000

42,000,000

Depreciation Equipment

5,000,000

17,000,000

Net profit (loss)

53,670,000

19,670,000

Required - Discuss which profit figure(s) you would recommend be reported based on the Conceptual Framework qualitative characteristics of relevance and faithful representation.

Reference no: EM133064578

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