Transports Vallerin applies the revaluation model to its class of taxi licences, which are traded on an active market in the large cities where it operates. It has just acquired a licence in a small town where no licences are traded. The finance director proposes revaluing this licence on the basis of a present value of expected takings, calculated by an external firm, in order to keep the class uniform. Write a judgement memo on the measurement of this licence and on the disclosures.
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