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An entity may choose to report this fair value on its balance sheet (fair value model) or disclose it in the footnotes (cost model). If the entity chooses to apply the fair value model, "A gain or loss arising from a change in the fair value of investment property shall be recognised in profit or loss for the period in which it arises." (IAS 40 ...
The carrying value is defined as the value of the asset appearing on the balance sheet. The recoverable amount is the higher of either the asset's future value [12] for the company or the amount it can be sold for, minus any transaction costs. [13] [14]
An asset should also be impaired in accordance with IAS 36 Impairment of Assets if its recoverable amount falls below its carrying amount. [1] Recoverable amount is the higher of an asset's fair value less costs to sell and its value in use (estimate of future cash flows the entity expects to derive from the asset).
Under IFRS it is acceptable, but not required, to re-measure the values of property, plant and equipment at their fair (current) values. [7] 'Fair value' is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm's length transaction.
IFRS 13, Fair Value Measurement, was adopted by the International Accounting Standards Board on May 12, 2011. [17] IFRS 13 provides guidance for how to perform fair value measurement under International Financial Reporting Standards and took effect on January 1, 2013. [17] It does not provide guidance as to when fair value should be used. [18]
Cost of goods sold (COGS) is the carrying value of goods sold during a particular period.. Costs are associated with particular goods using one of the several formulas, including specific identification, first-in first-out (FIFO), or average cost.
What factors impact the fair market value of a home? The fair market value of a home is impacted by various factors, including location, size, usable space, age, condition and amount of upgrades ...
The concept of the Fair Value Hierarchy is therefore introduced in paragraphs 22 through 31 in SFAS No. 157. To provide the financial statement user with more insight into the valuation techniques and to create comparability among financial statements, SFAS No. 157 requires the fair value assets and liabilities to be allocated to different levels or hierarchies based on the transparencies of ...