The Fair Value Model

there are three separate real estate companies US Realty (which uses the cost model), UK Realty (which uses the revaluation model, and International Realty (which uses the fair value model). Assume that on December 31, 2003, each company pays £1,000 cash to obtain investment property comprising of land with negligible value and an office building worth £1,000.  The building has a 10 year useful life, has no residual value, and is expected to provide a constant stream of economic benefits over time

THE INFLUENCE OF FAIR VALUE ACCOUNTING ON REAL ESTATE COMPANIES : BASED ON HONG KONG LISTED COMPANIES (PROPOSAL) BY ZHANG MUDI DEBBIE 12250511 ACCOUNTING CONCENTRATION GAO JIAYI CINDY 12250295 ACCOUNTING CONCENTRATION An Honours Degree Project Submitted to the School of Business in Partial Fulfillment of the Graduation Requirement for the Degree of Bachelor of Business Administration (Honours) Hong Kong Baptist University Hong Kong January 2016 Table of Content

The conceptual framework is used to outline potential courses of action or to present an ideal approach to an idea or thought. The framework describes basic concepts that underline the preparation and presentation of financial statements for external users. Qualitative characteristics of financial information are discussed in the conceptual framework of the standard setter, to whose work they are essential. If financial information is to be useful, it must be relevant and faithfully represent what

valuation is the push for and against the fair value approach.the purpose of this research is to examine the arguments on the use of fair value accounting and to identify the issues related to implementation of fair value accounting standards. Further, the results of literature related to role of fair value accounting within financial crisis are also investigated. Part –a Financial world is at the pace when the accountants are moving their steps towards fair value accounting, moreover FASB and IASB is

Memorandum to: Accounting department of family finance co. from: Daisy subject: fair value hierarchy date: december 15, 2012 Introduction Family Finance Co. (FFC), a publicly traded commercial bank, invests in a variety of securities in order to enhance returns greater than interest paid on bank deposits and other liabilities. The primary investments of FFC are collateralized debt obligation, mortgage-backed securities, auction-rate securities, equity securities in nonpublic companies, interest

financial report, particularly the use of mixed measurement methods that involving historical cost and fair value model. This report evaluates the choice to use single measurement type or mixed measurement method by discussing the strengths and drawbacks based on prior studies. Furthermore, this report gives highlights of the impacts of fair value in the financial institution. Keywords: Measurement, Fair Value, Historical Cost Introduction Purpose. The objective of this report is responding to a recently

European Accounting Review Vol. 19, No. 3, 461– 493, 2010 Fair Value or Cost Model? Drivers of Choice for IAS 40 in the Real Estate Industry A. QUAGLI∗ and F. AVALLONE∗∗ ∗ Department of Accounting and Business Studies (DITEA), University of Genova, Genova, Italy and ∗ ∗ Department of Computer and Management Science (DISA), University of Trento, Trento, Italy (Received September 2008; accepted February 2010) ABSTRACT The IFRS mandatory adoption in European countries is an excellent

and book values are highly correlated as book values contain earnings from the previous year (Klimczak, 2009, p. 9). However, both problems can be solved by the method of scaling. This method eventually results in the use of return regression that will be discussed further in the following section. Using the return regression, where the dependent variable is raw returns and independent variables are raw earnings and earnings surprises, this study will test the association between fair value FV and

on choice of asset measurement methods; This paper therefore discusses some methods of asset measurement and analyzes, from the stakeholders’ perspective, which of them provides the most useful and true and fair view of an organization. Asset measurement Models There are various models of asset measurement, these include Historical Cost(HCA), current purchasing power(CPP), replacement cost(RCA) or current cost(CCA), Net realizable

is more likely than not that the fair value of a reporting unit is less than its carrying amount and proceeded with Step 1 of the quantitative two-step goodwill impairment test for all reporting units. On the basis of the valuation prepared by Management’s Expert, Gator estimated that the fair value of all of the reporting units exceeded their respective carrying values and no