CP 13-2 International fair value accounting International Financial Reporting Standard No. 16 provides companies the option of valuing property, plant, and equipment at either historical cost or fair value. If fair value is selected, then the property, plant, and equipment must be revalued periodically to fair value. Under fair value, if there is an increase in the value of the property, plant, and equipment during the reporting period, then the increase is credited to stockholders’ equity. However, if there is a decrease in fair value, then the decrease is reported as an expense for the period. How is the international accounting treatment for changes in fair value for property, plant, and equipment similar to investments?
CP 13-2 International fair value accounting International Financial Reporting Standard No. 16 provides companies the option of valuing property, plant, and equipment at either historical cost or fair value. If fair value is selected, then the property, plant, and equipment must be revalued periodically to fair value. Under fair value, if there is an increase in the value of the property, plant, and equipment during the reporting period, then the increase is credited to stockholders’ equity. However, if there is a decrease in fair value, then the decrease is reported as an expense for the period. How is the international accounting treatment for changes in fair value for property, plant, and equipment similar to investments?
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money
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CP 13-2 International fair value accounting
International Financial Reporting Standard No. 16 provides companies the option of valuing property, plant, and equipment at either historical cost or fair value. If fair value is selected, then the property, plant, and equipment must be revalued periodically to fair value. Under fair value, if there is an increase in the value of the property, plant, and equipment during the reporting period, then the increase is credited to stockholders’ equity. However, if there is a decrease in fair value, then the decrease is reported as an expense for the period.
How is the international accounting treatment for changes in fair value for property, plant, and equipment similar to investments?
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