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Is it better if a co. attempts to show its NCA at fair/market value/recoverable amt as often as possible at any time during the yr instead of showing it at recoverable amt (if CV >RA) only by the end of year?
Better as in being in line with ias 36 at any point in time.
Companies sometimes need to give their latest FS to banks for loan approvals. If they r givin their last 6 months’ FS n assets’ CV r in excess of RA, even if tis ok not impair at this pt mayb, woud b better to do so?I get the feeling, from whenever I have had to deal with banks looking for finance for clients, that banks are pretty aware of the “deficiencies” of historic cost accounting and, if the amount to be borrowed is substantial, banks do tend to want some sort of charge over the assets by way of security.
“Better”? I suppose it depends on what you’re trying to achieve and who you’re trying to impress
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