Company Accounting

Running head: COMPANY ACCOUNTING
Company Accounting
Name of the Student:
Name of the University:
Author’s Note:

COMPANY ACCOUNTING1
Table of Contents
Question 1........................................................................................................................................2
Question 2........................................................................................................................................3
Question 3........................................................................................................................................4
References........................................................................................................................................6

COMPANY ACCOUNTING2
Question 1
a) In accordance with the IFRS 13 it is required and mandatory that entities considers
various assumptions and factors that entities would be considering from the view point of
market participants. The various factors and assumptions made should be helping in
properly and fairly determining the true and fair value of the asset by acting in the best
economic interest for assessing the true and fair value1. However, there are times when
the information or fair value information in the context of assignment where it becomes
necessary to undertake various judgments and analysis in proposing the fair value of the
assets. Location, Condition and Size of Assets is an important aspects on the other hand,
restrictions associated with selling of asset could also be one of the key facts that should
be considered while valuing an asset. In the context of fair value assessment it is
important that the companies undertake various factors and the total value of cash flows
that would be flowing to an economy while determining the true and fair value of asset.
b) A market participant should make various assumptions and value the assets based on
reasonable and justifiable basis whereby deviations in the cash flow patterns are well
predicted and taken into consideration while valuing an asset. Similarly, Location,
Condition, Age and Cash flowing to an entity are some of the important terms that the
entity should consider while valuing the asset2. The best and highest usage of the asset
could be well analyzed if the physical structure, location, legal and financial viability are
well taken into consideration for valuing the asset.
1 Kenyon, Richard, and Chris Kenyon. "Accounting for KVA under IFRS 13." Risk, March (2016).
Pandya, Anuradha. Resistance to IFRS 13-initial insights. Diss. 2016.
2 Bassemir, Moritz. "Why do private firms adopt IFRS?." Accounting and Business Research 48.3 (2018): 237-263.