Ias 16: The Purpose Of The Carnival Corporation

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Based on the IFRS standards every company needs to prepare a Strategic Report in which it attempts to exhibit the necessary technique and business evaluation in order to meet reporting requirements of the Companies Act 2006. Carnival Corporation Plc is one of the largest companies worldwide providing cruising services. They launched in 1972 and they managed to be "The World’s Most Popular Cruise Line". It takes an extensive period of time in order for a ship to be constructed especially if it’s a very large cruise ship. It took many years for Carnival corporation plc to build their ships, despite this carnival Plc has achieved to be the largest cruising company nowadays.

The Purpose of International Standards in Accounting:
The whole idea of the IAS and IFRS standards is that, since companies want to expand in a global financial market they have to have some principles and international standards to follow which confirms that there is actual regulation of financial markets. Through these standards capital markets that are placed in various authorities can make the most proficient capital streams that are valuable to controllers, associations, and the market in general. IAS 16
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The main concern that needs to be addressed first is the identification of assets and properties, and then the actual worth of their carrying sums, what amount of depreciation is going to be charged on them and recognition of impairment losses related to them. Initial measurement of assets would be done at cost. Cost model consists the original cost of the asset minus the impairment and the depreciation. However IAS 16 has two accounting models. The other one is the Revaluation model. When an asset is measured at revaluation cost it means that is in its Fair value at the date of revaluation less any subsequent accumulated depreciation and less any subsequent accumulated impairment
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