The Business School
BUACC2603 – Corporate Accounting
Semester 1, 2013
Assessment weight: 25%
Due Date: Week 10
Length: 1500 words
Group Assignment: 2 people
Examine the requirements for measuring assets at fair value in the following accounting standards:
IAS3/AASB 3 Business Combinations
IAS116/AASB116 Property, plant and equipment
IAS138/AASB138 Intangible assets
a. How can fair value be determined in each of the standards?
AASB13 – Fair value measurement
Definition of fair value
Difference between fair value in different 3 above standards
Compare AASB13 with all three standards
b. What impact would the differences in the methods allowed to determine fair value have on the financial reports?
Differences from Fair value measurement AASB13
c. Do you think the requirements for an active market in relation to intangibles assets is justified? What problems could occur if the active market requirement was not included for intangible assets?