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(a) must report all their assets on the statement of financial position (balance sheet) at fair value.
(b) may report property, plant, and equipment and natural resources at fair value.
(c) may refer to a concept statement on estimating fair values when market data are not available.
(d) may only use historical cost as the measurement basis in financial reporting.
Option b is the right answer.
Answer B. MAY report PPE at Fair Value.
Why? IAS16 prescribes two methods of valuation of PPE - a. Cost Model and b. Revaluation Model.
Cost Model shows the PPE at historical cost minus accumulated depreciation and impairments, if any.
Revaluation Model shows the carrying cost of PPE at fair value (revalued at that date) provided the fair value can be measured reliably.
Answer is not A and D as IFRS does not say only Fair Value (words must report) or Historic Value (words may only use) must be followed. The soul of IFRS is that it is indicative and not a decisive rule book like GAAP. Answer is also not C, as if there is not enough market data available, how can the fair value be measured?
the answer is (b) may report property, plant, and equipment and natural resources at fair value.
Unlike GAAP, companies under IFRS can choose to report the assets at fair value.
companies uses IFRS must follow instructions. I mean to say should disclose all accounts at their fair value. so that company can be examine their actual position stands at. Its Answer is A.
c) Correct.When no established market value exist on Assets.Fair value estimates can be used
