What is IFRS reassessment?
IFRS is a modification where the company must change or change the value of a fixed asset for a specific purpose. The most common overeating focuses on the assets, plant or equipment of the company that all fall under a large group of solid assets. Re -evaluation of IFRS is changing the historical value of assets - which is most likely that society recorded an asset in the book - to a real market value. The purpose of such modifications is to submit accounting information as accurate as possible. If the market does not exist for a specific fixed asset, the accountant may need to estimate the asset value. There may also be several other costs on this account, such as transport or transport costs, installation fees and the cost of testing equipment. The problem with this accounting theory is that historical costs are not a ttch value for fixed assets. For example, the asset may increase or reduce market value over time. Therefore, the balance sheet of society under or overvalued in a certain owhere, which distorts the real financial health of the company.
Under certain conditions, the company will have to re -evaluate IFRS on specific fixed assets. The IFR overcoming model has specific instructions that the company must follow; It may be best to consult an accountant licensed IFRS to recognize the rules that apply in a given situation. In most cases, the company must find a market where similar assets are purchased and sold according to the principles of free market. The accountants must be very careful when selecting these markets for re -evaluation of IFRS and possible prices of similar assets. In some cases, this market does not exist for specialized assets.
If IFRs Revalation results in a reduction in the value of a fixed asset, the company most likely must make a modification that results in a loss of books. Loss reduces the value of the asset in the balance sheet and with the greatest truth belowBody results in loss against net income. The profit of the asset value can work in a similar way where the balance sheet and profit increases in contradiction with the company's net income for the appropriate period. Other technical problems can be introduced due to the potential complexity of these accounting standards.