hard · CFA Level I fsa

Pinion Logistics is evaluating the impact of revaluing its fleet under IFRS versus maintaining historical cost under US GAAP. The fleet has a carrying value of 150,000,000 and a fair value of180,000,000.

If Pinion adopts the revaluation model, which of the following ratios will remain unchanged relative to the US GAAP cost model?

  1. Net Profit Margin.
  2. Total Asset Turnover.
  3. Debt-to-Equity Ratio.

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