可以解释一下这道题嘛

问题如下：

Question At the end of the year, a company revalued its manufacturing facilities, increasing their carrying amount by 12%. There had been no prior downward revaluation of these facilities. The revaluation will most likely cause the company’s:

选项：

A.return on assets to increase.

B.return on equity to decline.

C.net profit margin to increase.

解释：

1. Incorrect. The upward revaluation causes an increase in the carrying amount of the assets but bypasses net income and is reported as other comprehensive income (under the heading of revaluation surplus), increasing equity. This will cause the return on assets to decline (same income, higher assets).

2. Correct. The upward revaluation increases the carrying amount of the assets but bypasses net income. The revaluation is reported as other comprehensive income and will be accumulated in equity under the heading of revaluation surplus, increasing equity. This increase will cause the return on equity to decline.

3. Incorrect. The upward revaluation causes an increase in the carrying amount of the assets but bypasses net income and is reported as other comprehensive income (under the heading of revaluation surplus), increasing equity. This will cause Net Income/Sales to be unaffected.

• explain and evaluate how impairment and derecognition of property, plant, and equipment and intangible assets affect the financial statements and ratios