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05-05-2013, 05:30 PM
(05-05-2013, 12:23 PM)TheMillennium Wrote: Does this mean that companies that are not REITS, but hold some properties bought from long ago, are required to revalue these properties on a consistent basis? Rather than just leave it at the value bought from 20years ago?
If so, wouldn't value traps be eliminated?
Hi TheMillenium, the accounting policy is not changed from a recognition perspective. Meaning if I am a company that records my IP at cost, I will continue to do so. My additional disclosure of fair value will continue too. But the way to measure fair value will need to take into account my intended use for it, especially if I have near term redevelopment plans.
The revised FRS40 does not prescribe on frequency of valuation nor insist a change that companies must record all IP at fair value rather than cost.
A stock well bought is half sold - Ben Graham
Price is the most important factor to use in relation to value - Walter Schloss
Price is the most important factor to use in relation to value - Walter Schloss