"Financial Report":The upward revaluation

B is 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. 

A is 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).

 C is 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.

B is correct. Licenses will have the largest dollar impairment charge on the income statement due to the size of the implied impairment charge, which is calculated as: Accumulated impairment losses and amortization as of 31 December 2019 – (Accumulated impairment losses and amortization as of 31 December 2019 + Exchange movements + Amortization charge for year + Net Additions (Disposals)). In this case the largest impairment loss that will be reported is due to licenses. Impairment charge due to licenses = 10,856 – (8,243 + 821 + 1,244 – 25) = 573.

 A is incorrect because the amount of the impairment charge due to computer software is less than that of licenses. The computer software impairment charge for 20X2 in dollars = 8,214 – (5,257 + 334 + 2,102) = 521.

C is incorrect because the amount of the impairment charge due to goodwill is less than that of licenses. The goodwill impairment charge for 20X2 in dollars = 73,194 – (65,321 + 7,324) = 549.