Fair Value Measurement Assignment (Doc)
Added on 2020-10-05
8 Pages2257 Words152 Views
Use of AccountingStandards
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1PART A...........................................................................................................................................1Accounting standard on fair value measurement........................................................................1PART B............................................................................................................................................4Impairment loss...........................................................................................................................4CONCLUSION................................................................................................................................5REFERENCES................................................................................................................................7
INTRODUCTIONAccounting standards suggests the core methods and techniques that are useful forsolving any accounting problem. All organisations should use accounting standards to maintaintheir records and keep it appropriately so that their financial statements show the accurate imageof company (Barker and Schulte, 2017). This report covers the fair value managementaccounting standards that are produced by International Financial Reporting Standards.Furthermore, it includes the impairment loss with solving critical financial issue. PART AAccounting standard on fair value measurementAccounting standards refer to the written documents that are issued by several accountingbodies which are expert in accounts and provide the best treatment, presentation and properdisclosure of all types of transactions. It includes all kinds of rules and regulations that are usedto maintain control or govern an organisational accounting process (Cenciarelli, De Santis andGreco, 2018). These are the general set for determining core principles and procedures that areused in making financial statements. According to fair value management, such accountingstandards are the basic guidelines that direct or supervise main accounting practices. In thiscontext, IFRS 13 demonstrates fair values that are set out for a framework and measure its fairvalue as well as needs disclosure about this management. An organisation must measure all itsassets and liabilities with its location, condition and restriction for sale. Such standards mustprovide the best hierarchy of methods that arrive at core fair value of all things (IFRS 13 FairValue Measurement, 2013). Fair value measurement is an alternative technique that measures thevalue of all types of assets and liabilities. There are Generally Accepted Accounting Principles that are used at high level among allprivate as well as public organisations to accomplish their objectives. IFRS 13 never specify theunit of an account that should be used for measuring the core value. It means that it is left to theindividual standard to demonstrate account for fair value measurement (DeFond and et.al.,2018). This standard refers to the fair value that is based on exit price notion and it uses mainhierarchy for such value results of which are based on market. It developed in September 2005by IFRS and issued in May 2011. It has also several amendments that are derived by AnnualImprovements to IFRSs Cycle in December 2013. 1
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