Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FR Exams › Fair Value and Revaluation
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- February 3, 2015 at 10:22 am #224969
what is the difference between Fair value and Revaluation models?
if there is no difference then why different names are used for the same thing?February 3, 2015 at 1:41 pm #225017One can measure items at fair value – for example, for the purposes of “proper” accounting under IFRS3 revised – but that doesn’t mean that the subsidiary is going to adopt the revaluation model
Besides, why does any pair of synonyms exist?
February 4, 2015 at 4:14 am #225115Can you please elaborate?
February 4, 2015 at 9:21 am #225158A fair value exercise may be taken for a number of reasons including determining whether there has been an impairment of an asset and determining the fair value of assets acquired on a subsidiary acquisition.
But just because a fair value exercise is carried out does not automatically imply that the revaluation model is going to be adopted
Is that better?
February 4, 2015 at 9:29 am #225160I just wanted to know the difference between these two models,since both give the same sense.
February 4, 2015 at 10:13 am #225168I’m sorry! I hadn’t realized that you were talking about a fair value MODEL – I thought you were simply referring to a fair value EXERCISE.
If we’re talking the difference between the titles of two models ……. I don’t think I could distinguish them
I’ll look it up on google when I get home later this evening and, if I’m more enlightened, I’ll let you know
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