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How are current assets and non current assets valued ? Does the value keep changing based on fair value in that particular year?
How are current liabilities and non current liabilities valued? Does the value keep changing based on present market conditions?
Current assets are valued at the lower of cost and net realisable value
Non-current assets are valued at either:
cost less accumulated depreciation and impairments, or
at valuation (when using the revaluation model) and valuation changes with time at each year end
current liabilities are valued at the amount that would necessarily be given over to settle that liability
non-current liabilities are valued at their present value and again value changes with time as entity’s cost of capital changes and as we get closer each year to redemption date
OK?
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