Measurement based on revaluation.
1.1 An alternative to cost
This chapter was written in the context of majority voting practices
regarding: Valuation of property, plant and equipment and intangible
assets: historical cost. But Chapter 8 points out some drawbacks of this
and some alternatives. We can provide more relevant information.
Regulations in some European countries including the Netherlands and
Denmark Revaluation above cost is permitted in the UK. In some
countries, evaluation may be required by law. For example in France
1978, Italy 1991, Spain 1996. in America and Germany Revaluation of
tangible and intangible assets beyond cost is not permitted. under IAS
16, the 'benchmark' treatment for property, plant and equipment is cost.
However, the "acceptable alternative" is to use the fair value at each
balance sheet data(paragraphs 28 and 29). IAS 38 has similar permission
to remeasure certain assets. Intangibles if there is a market in which the
value can be observed (paragraph 64).An example of re-evaluation is
shown in Table 9.10. As can be seen, the revaluation covers 11% of the
total assets of the UK company Marks.& Spencer and 5% of the assets,
plants and equipment of Spanish companies Celsa. Recent valuations
are the reason for allowing revaluation of various assets. It may provide
more relevant information. However, the exact reason is This can be
explained by three practical issues:
1.1 An alternative to cost
This chapter was written in the context of majority voting practices
regarding: Valuation of property, plant and equipment and intangible
assets: historical cost. But Chapter 8 points out some drawbacks of this
and some alternatives. We can provide more relevant information.
Regulations in some European countries including the Netherlands and
Denmark Revaluation above cost is permitted in the UK. In some
countries, evaluation may be required by law. For example in France
1978, Italy 1991, Spain 1996. in America and Germany Revaluation of
tangible and intangible assets beyond cost is not permitted. under IAS
16, the 'benchmark' treatment for property, plant and equipment is cost.
However, the "acceptable alternative" is to use the fair value at each
balance sheet data(paragraphs 28 and 29). IAS 38 has similar permission
to remeasure certain assets. Intangibles if there is a market in which the
value can be observed (paragraph 64).An example of re-evaluation is
shown in Table 9.10. As can be seen, the revaluation covers 11% of the
total assets of the UK company Marks.& Spencer and 5% of the assets,
plants and equipment of Spanish companies Celsa. Recent valuations
are the reason for allowing revaluation of various assets. It may provide
more relevant information. However, the exact reason is This can be
explained by three practical issues:
