ACC2014 Financial Accounting: Fair Value Model & IAS Compliance
VerifiedAdded on 2023/06/03
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This financial accounting assignment delves into the application of the fair value model, particularly in relation to IAS 40, for a company with residential properties and investments. It contrasts the fair value model with the revaluation model under IAS 16, highlighting the key difference that the fair value model does not depreciate the asset's value but adjusts it based on market revaluation. The report analyzes specific transactions from a case study, demonstrating how the company benefits from using the fair value model over historical cost accounting, which could lead to inaccurate financial statements. The assignment also underscores the importance of conservative accounting practices and provides references to support its analysis, all of which are available, along with other solved assignments, on Desklib.
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