Posts tagged Fair Value Concept
Fair Value Accounting in IFRS
To what extent fair value accounting holds good for valuation in IFRS
Significant percentage of the balance sheet would be at Fair Value compared to current practice of carrying at historical cost under IFRS.
Use of Fair value:
At present Fair Value is limited to impairment of assets, measurement of retirement benefits and mark to market accounting of derivatives where as under IFRS it extend to Held for Trading portfolio, Available for Sale, assets/liabilities designated as fair value through More >
Accounting and Business are Interrelated in IFRS
There is a feeling that IFRS – rather than business strategy – might actually be driving changes to corporate behavior. In some cases, it may help companies do things better – such as revisit their derivatives strategies – in other cases, it could be changing the way companies work just to get the desired accounting outcome.
IFRS is a principle based model as compared to rule based I GAAP. IFRS requires extensive use of fair valuations for measurement of assets and liabilities. The objective of IFRS is to set the Balance Sheet right, and hence a significant volatility may come in Profit & Loss statement.
There are three principles laid down in IFRS More >
