Adoption of Fair Value Method in Abundant Produce Limited and Angel Seafood Limited

Case Study- Fair value method adoption
For the above case study, we have to select two companies with ASX listing. Then the latest
annual reports of those companies are to be considered for discussion of their adoption of fair
value method as per disclosure.
The first company considered is Abundant Produce Limited with ASX code as ABT. As per their
latest annual report for the year ended on 30th June, 2018, the disclosure on Notes to Financial
Statements is enclosed herewith. (Ltd, 2018)
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The disclosure on fair value states that the company is practicing fair value to evaluate some of
its assets or liabilities by considering the present market value for disposal of any asset or
liability. The exercise of impairment of assets is done as per the standard procedure applying fair
value method of measurement of assets. The valuations of assets are done by deducting fair value
less costs to arrive at the realistic value of the assets following AASB 116: Property, Plant and
Equipment. The excess of fair value over costs is considered as addition to asset value and vice
versa. The screenshot is enclosed for reference.
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