(Cite the relevant paragraph number of the Conceptual Framework for Financial

(Cite the relevant paragraph number of the Conceptual Framework for Financial Reporting in your answer.)

a)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.

Required

i.Briefly explain whether the Conceptual Framework permits
the reporting of the land at its current market price.

ii.State (in bullet points) one advantage and one
disadvantage of reporting the land at its current market price.

iii. State (in bullet points) one advantage and one disadvantage of reporting the land at its historical cost