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  • FR - Ias 40

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    Zubair Jalloh
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    The document discusses guidelines for selecting and applying fair value (FV) models according to IAS 16 and IAS 40 for measuring intangible assets (IP) and investment properties. Key points include: FV should be used for all IPs except when it cannot be measured reliably; FV estimates require an assumed orderly transaction between knowledgeable, willing parties; and changing measurement models from cost to FV is only allowed if it results in a more appropriate presentation of assets.

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    IAS 40

    Original Title

    FR - IAS 40 (2)

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    The document discusses guidelines for selecting and applying fair value (FV) models according to IAS 16 and IAS 40 for measuring intangible assets (IP) and investment properties. Key points include: FV should be used for all IPs except when it cannot be measured reliably; FV estimates require an assumed orderly transaction between knowledgeable, willing parties; and changing measurement models from cost to FV is only allowed if it results in a more appropriate presentation of assets.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    10 views1 page

    FR - Ias 40

    Uploaded by

    Zubair Jalloh
    The document discusses guidelines for selecting and applying fair value (FV) models according to IAS 16 and IAS 40 for measuring intangible assets (IP) and investment properties. Key points include: FV should be used for all IPs except when it cannot be measured reliably; FV estimates require an assumed orderly transaction between knowledgeable, willing parties; and changing measurement models from cost to FV is only allowed if it results in a more appropriate presentation of assets.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    use IAS 16

    If selected, use for all IP EXCEPT if FV cannot be measured reliably


    assume RV= 0

    Orderly transaction takes place i,e. both buyer & seller know nature & xtics of IP

    Buyer motivated but not compelled to buy


    FV MODEL
    over-eager, forced, can sell @ any price or wants unreasonable
    Seller NOT: price @ mkt

    FV= factors & knowledge relevant to mkt


    Issues addressed Not the same as 'value in use'
    Rice value in use= factors & knowledge specific to entity
    "...highly unlikely if from FV to Cost" - IAS 40
    allowed IF result in 'more appropriate presentation' If selected by lessee, used to measure the IP held as 'right-of-use
    Bread CHANGING MODELS IAS 40 - 2 asset', not the underlying property & if lease payments made @ market rates, FV - Payments = 0

    Integral assets(eg. building & its parts) recognised together to


    determine FV

    IAS 16
    COST MODEL

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