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IAS 40

This topic has 1 reply, 2 voices, and was last updated 1 year ago by Stephen Widberg.

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March 14, 2021 at 1:25 pm #614410
Noah098
Member
- Topics: 935
- Replies: 352
sir is it true that when the company is following fair value model then it has to use an EXTERNAL MARKET VLATUATION COMPULSORILY? but when its primarily using cost based model(generally to save costs involved in market vlatuaion of its properties) then it has some leeway and use internal methods for FV of property disclosure?
If you get what am trying to ask then can you help me?
March 15, 2021 at 12:16 pm #614462
Stephen Widberg
Keymaster
- Topics: 12
- Replies: 2843
If there is an external price for an identical (Level 1 in IFRS 13) or a similar (Level 2) asset, then you should use it.
So, if the directors are using internal methods, and there are external valuations, tell them to stop it!
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