-A A & Aa-=,三,面 X, A 9.AaBbCcI AaBbCcDx AaBbCcA 2A A1三。4.Normal...StrongWPSOffiYou are the financial controller of Omega, a listed entity which prepares consolidated financialstatements in accordance with International Financial Reporting Standards (IFRS). The chiefexecutive officer (CEO) ofOmega has reviewed the draft consolidated financial statements ofthe Omega group and of a number ofthe key subsidiary companies for the year ended 31March 2018. None of the subsidiaries are listed entities but all prepare their financialstatements in accordance with IFRS. The CEO has sent you an email with the followingqueries:Query TwoWhen reading the accounting policies note in the consolidated financial statements I noticethat we measure all of our freehold properties using a fair value model but that we measureour plant and equipment using a cost model. I further notice that both of these asset types areshown in the 'property, plant and equipment' figure which is a single component of non-current assets in the consolidated statement of financial position. It makes no sense to methat assets which are shown as property, plant and equipment are measured inconsistently. Ifit's OK to measure different parts of property, plant and equipment using two differentmeasurement models, why not use the fair value model for the more readily accessibleproperties and use the cost model for the properties in remote locations to save on time andcost?

IAS 16 specifies the accounting treatment of Property, plant, and equipment.

Answered: measurement models, why not use the…

measurement models, why not use the fair value model for the more readily accessible properties and use the cost model for the properties in remote locations to save on time and cost?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter3: Analyzing And Recording Transactions

Section: Chapter Questions

Problem 1EB: Match the correct term with its definition. A. Financial Accounting Standards Board FASB) i. used by...

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