Asked by Meliza Acosta on May 09, 2024
Verified
Under IFRS
A) companies can apply fair value to property plant and equipment and natural resources.
B) companies can apply fair value to property plant and equipment but not to natural resources.
C) companies can apply fair value to neither property plant and equipment nor natural resources.
D) companies can apply fair value to natural resources but not to property plant and equipment.
Fair Value
The estimated price at which an asset could be bought or sold in a current transaction between willing parties, other than in a liquidation sale.
Property Plant
Property, plant, and equipment (PP&E) are tangible fixed assets used in the production or supply of goods and services, minus accumulated depreciation.
IFRS
International Financial Reporting Standards, a set of accounting standards developed by an independent organization, providing a global framework for how public companies prepare and disclose their financial statements.
- Appreciate the stipulations for financial statement disclosure under IFRS and GAAP, including how assets, liabilities, and equity are classified and valued.
Verified Answer
VM
Vivian MohamadMay 12, 2024
Final Answer :
A
Explanation :
Under IFRS, companies can apply fair value to property plant and equipment and natural resources, as long as certain conditions are met. However, the use of fair value for property plant and equipment is not mandatory and may only be used in limited circumstances. Fair value may be used for natural resources when they are being actively exploited or extracted.
Learning Objectives
- Appreciate the stipulations for financial statement disclosure under IFRS and GAAP, including how assets, liabilities, and equity are classified and valued.