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This thesis deals with the valuation of tangible fixed assets according to IAS / IFRS. Its aim is to assess the impact of the revaluation of tangible fixed assets from historical cost to fair value. There is characterized by the concept of IAS / IFRS, listed options valuation and discuss the various standards on the issue. The study also analyzed in detail IFRS 13 - Fair Value. The main part of the work is focused on a specific company, which is mainly described the methodology of valuation of tangible fixed assets and include information specific to the asset. The study also outlines the financial position and performance of the company and discusses selected financial indicators. On the basis of this analysis is then evaluated the impact of the revaluation of tangible fixed assets in the financial statements and, therefore, its financial indicators.

Diploma thesis is focused on two main measurement concepts -- historical cost and fair value. The aim is to interpret fair value as a measurement base used to assign value to non financial assets, and compare it with well-known historical cost base. In context with historical cost measurement, attention is also paid to impairment meaning a decrease in carrying amount of an asset. Major part of the thesis deals with fair value measurement according to the new accounting standard IFRS 13. The thesis is concluded with practical survey about the use of fair value as a measurement base for non financial assets in practice.

This diploma thesis deals with the issue of fair value measurement of tangible long-lived assets under IAS/IFRS. It is objective is to assess the impact of revaluation of long-lived assets from their historical prices to their fair value. The work further characterizes the harmonization of the accounting systems and detailed described IFRS 13 – Fair Value Measurement. The work is focused on company describing particular the valuation methodology as well as specific data on the asset. At the end of the work the potential risks of users of the financial statements are displayed.

This paper investigates the potential procyclical effects of fair value accounting (FVA). If FVA adjustments result in increased accounting profits with the recognition of transitory gains through a firm's profit and loss (P&L), and if management incorrectly assesses the persistence of the unrealised gains, these increased profits may be paid out as dividends. This has the potential to increase leverage and risk for these firms, thereby also possibly amplifying economic cycles. A study by Goncharov and Van Triest (2011:59) on Russian firms found that FVA adjustments are persistent in future earnings; however, no empirical evidence was found to support an increase in dividends in response to unrealised FVA gains. By contrast, when the setting is limited to South African banks only, De Jager (2015:157) found that South African banks have paid the full amount of any unrealised transitory gains as dividends. This study focuses on the effects of FVA adjustments on dividend policy for South African firms, as represented by the firms included in the FTSE/JSE Top 40 Index. This furthers De Jager's (2015) study by extending the investigation of the dividend relevance of FVA adjustments from the major South African banks, to South African large firms in general. The results of a panel regression of the net profit of these firms reveal that unrealised FVA adjustments do have a persistent influence on future earnings, indicating that these adjustments contain both transitory and persistent elements. A further panel regression of the annual dividends declared by these firms indicates that dividend payments do include a portion of unrealised FVA gains, as expected by the persistent nature of a portion of these unrealised FVA gains.

Börsnoterade bolag ska i sin koncernredovisning redovisa enligt IFRS och förvaltningsfastigheter skall redovisas enligt IAS 40 Förvaltningsfastigheter. Detta examensarbete undersöker hur Nordiska börsnoterade bolag tillämpar vissa punkter inom IAS 40 i 2014 års redovisning jämfört med 2009 års redovisning. Syftet med undersökningen är att undersöka skillnader mellan de granskade företagens redovisning 2014 och 2009, med utgångspunkten i en tidigare publicerad undersökning (Hedlund & Ersson, 2011). Det som undersöks är om företagen använder samma värderingsmetod, om de informerar om hur värdering av förvaltningsfastigheter skett, om var i resultatrapporten de rapporterar justeringar av verkligt värde samt hur väl de lämnar upplysningar enligt IAS 40 punkt 75. Undersökningen har skett med en kvantitativ metod då det är årsredovisningar som granskats. Undersökt data är årsredovisningar från 2014 och 2009 för samma företag som granskats i den tidigare undersökningen. Några företag har utgått då de inte ingår i urvalsramen Nordiskt börsnoterat fastighetsbolag. Totalt granskades 14 stycken företag. Resultatet visar att efterlevnaden totalt sett är något bättre 2014 jämfört med den tidigare undersökningen. Till stor del beror det på urvalet där de företag som utgått var dåliga på att lämna upplysningar enligt IAS 40 i 2009 års redovisning. Sett till de företag som är med i båda undersökningarna är efterlevnaden likartad de jämförda åren. Det är få företag som lämnar upplysningar om begränsningar i rätten att sälja förvaltningsfastigheter, avtalsenliga förpliktelser att köpa eller hur de skiljer på rörelsefastigheter och förvaltningsfastigheter. Tolkningen kan då göras att det inte finns någon restriktion eller förpliktelse om det inte lämnas några sådana upplysningar. Om det är ett fastighetsbolag så kan det tolkas som att de inte har några rörelsefastigheter. Med dessa tolkningar blir efterlevnaden bland de undersökta företagen god. / Listed companies should prepare their consolidated accounts according to IFRS and investment property shall be accounted for in accordance with IAS 40 Investment Property. This study, investigates how the Nordic listed companies comply with certain paragraphs of IAS 40 in the 2014 financial statements as compared with the 2009 financial statements. The purpose of the study is to investigate differences between the studied company’s financial statements in 2014 compared to 2009, with a previous study (Hedlund & Ersson, 2011) as a base. The study focus on whether they use the same valuation method, if they describe the valuation process, where in the financial statement fair value adjustments are reported and how well they comply with IAS 40 paragraph 75. The study is based on a quantitative method since financial statements are studied. Examined data are annual reports for 2014 and 2009 from the companies investigated in the previous survey. However slightly fewer companies were included since some of them are no longer included in the selection criteria Nordic listed real estate company. The result shows that compliance with IAS 40 is overall slightly better than in the previous survey. Largely, it depends on the selection of companies, since the companies excluded were bad at providing information in accordance with IAS 40 in the previous investigation. Looking at the companies that are included in both studies, compliance is similar for the compared years. There are few companies that provide information about restrictions on the right to sell investment properties, obligations to buy or how they differ business property from investment property. The interpretation can then be made that there is no restriction or obligation if there is no such information. If it is a real estate company, the interpretation can be made that they have no business property. With these interpretations compliance is good among the studied companies.

A utilidade da contabilidade para o processo de decisão está relacionada à mensuração e divulgação apropriada de informações que, realmente, reflitam a situação econômicofinanceira dos negócios. O valor justo (fair value) tem sido apresentado como medida de avaliação de certos ativos específicos, entre eles, os biológicos, que são dotados de vida e por isso estão sujeitos a transformações biológicas (nascimento, crescimento, degeneração e morte) as quais afetam significativamente o seu valor, não sendo o custo histórico capaz de refletir fielmente todos os ganhos ou perdas de valor. Diante deste cenário, esta pesquisa terá por finalidade responder à questão: Quais restrições podem ser encontradas na aplicação do valor justo na atividade de pecuária no Brasil, considerando a subjetividade implícita nas escolhas dos métodos de avaliação?; e, consequentemente, seu objetivo é estudar a subjetividade encontrada na aplicação do valor justo na mensuração dos ativos biológicos na atividade pecuária bovina no Brasil, considerando os aspectos conceituais e as regras determinadas pelo Pronunciamento CPC 29. O foco do estudo foi a pecuária bovina de corte em função de sua importância econômica nacional e por existir mercado ativo para os animais em várias fases da vida. A pesquisa revisou os principais conceitos pertinentes ao tema, além dos estudos que permeiam o valor justo, buscando examinar a aplicabilidade, restrições, críticas, vantagens e graus de subjetividade. O estudo de caso foi o método utilizado para conhecer os sistemas em uso na avaliação de ativos biológicos, os quais foram comparados a uma lista de requisitos exigidos pelo valor justo. Os resultados obtidos apontam que é possível ser aplicado o valor justo na atividade agropecuária no Brasil, para o caso estudado, entretanto em algumas fases da vida do animal, principalmente quando não existem valores de mercado disponíveis, tal aplicação encontra maiores restrições além de proporcionar maior subjetividade. / The usefulness of Accounting for decision making is related to measurement and appropriate disclosure of information that really reflect the economic and financial situation of the business. The fair value has been presented as a way of assessment of certain specific assets, including the biological, which are endowed with life and, therefore, are liable to biological transformations (birth, growth, degeneration and death) which affect significantly their value and the historical cost is not able to faithfully reflect every values gains or losts. Under this scenario, this research aims to answer the question: What restrictions can be found in the application of fair value in the activity of cattle raising in Brazil, considering the implicit subjectivity in the choice of assessment methods? And, consequently, the present work aim to study the subjectivity found in the application of fair value in biological assets measurement in cattle raising in Brazil, considering the conceptual aspects and rules determined by the Standard CPC 29. The focus of this study was the beef cattle farming because of its importance for national economic and the existence of active market for these animals at various stages of life. The study reviewed the main concepts that are relevant to the subject, besides the studies that underlie the fair value, seeking to consider the applicability, limitations, criticisms, advantages and degrees of subjectivity. The case study was the method used to know the systems in use in the assessment of biological assets, which were compared to a list of requirements required by the fair value. The results indicates that it is possible to apply the fair value in agriculture and cattle raising activity in Brazil, for the case studied, however in some phases of this animals life, especially when there are no market values available, such application finds further restrictions besides providing greater subjectivity.

A utilidade da contabilidade para o processo de decisão está relacionada à mensuração e divulgação apropriada de informações que, realmente, reflitam a situação econômicofinanceira dos negócios. O valor justo (fair value) tem sido apresentado como medida de avaliação de certos ativos específicos, entre eles, os biológicos, que são dotados de vida e por isso estão sujeitos a transformações biológicas (nascimento, crescimento, degeneração e morte) as quais afetam significativamente o seu valor, não sendo o custo histórico capaz de refletir fielmente todos os ganhos ou perdas de valor. Diante deste cenário, esta pesquisa terá por finalidade responder à questão: Quais restrições podem ser encontradas na aplicação do valor justo na atividade de pecuária no Brasil, considerando a subjetividade implícita nas escolhas dos métodos de avaliação?; e, consequentemente, seu objetivo é estudar a subjetividade encontrada na aplicação do valor justo na mensuração dos ativos biológicos na atividade pecuária bovina no Brasil, considerando os aspectos conceituais e as regras determinadas pelo Pronunciamento CPC 29. O foco do estudo foi a pecuária bovina de corte em função de sua importância econômica nacional e por existir mercado ativo para os animais em várias fases da vida. A pesquisa revisou os principais conceitos pertinentes ao tema, além dos estudos que permeiam o valor justo, buscando examinar a aplicabilidade, restrições, críticas, vantagens e graus de subjetividade. O estudo de caso foi o método utilizado para conhecer os sistemas em uso na avaliação de ativos biológicos, os quais foram comparados a uma lista de requisitos exigidos pelo valor justo. Os resultados obtidos apontam que é possível ser aplicado o valor justo na atividade agropecuária no Brasil, para o caso estudado, entretanto em algumas fases da vida do animal, principalmente quando não existem valores de mercado disponíveis, tal aplicação encontra maiores restrições além de proporcionar maior subjetividade. / The usefulness of Accounting for decision making is related to measurement and appropriate disclosure of information that really reflect the economic and financial situation of the business. The fair value has been presented as a way of assessment of certain specific assets, including the biological, which are endowed with life and, therefore, are liable to biological transformations (birth, growth, degeneration and death) which affect significantly their value and the historical cost is not able to faithfully reflect every values gains or losts. Under this scenario, this research aims to answer the question: What restrictions can be found in the application of fair value in the activity of cattle raising in Brazil, considering the implicit subjectivity in the choice of assessment methods? And, consequently, the present work aim to study the subjectivity found in the application of fair value in biological assets measurement in cattle raising in Brazil, considering the conceptual aspects and rules determined by the Standard CPC 29. The focus of this study was the beef cattle farming because of its importance for national economic and the existence of active market for these animals at various stages of life. The study reviewed the main concepts that are relevant to the subject, besides the studies that underlie the fair value, seeking to consider the applicability, limitations, criticisms, advantages and degrees of subjectivity. The case study was the method used to know the systems in use in the assessment of biological assets, which were compared to a list of requirements required by the fair value. The results indicates that it is possible to apply the fair value in agriculture and cattle raising activity in Brazil, for the case studied, however in some phases of this animals life, especially when there are no market values available, such application finds further restrictions besides providing greater subjectivity.

Fair Value Accounting is becoming increasingly more prominent, and auditing such measurements is at times difficult as a great deal of estimates and judgments are involved. This makes auditors jobs more challenging. Research has found that there is a need for understanding how auditing standards affect the audit process. Furthermore, some studies have shown that there is a gap between auditors and inspectors view of what constitutes sufficient and appropriate audit evidence regarding fair value measurements, the “FVM gap”. The aim of this study is to provide new insight on how auditing standards and inspectors affect the judgment of auditors in regards to fair value measurements. This study contributes to audit standard setters by illuminating how current auditing standards affect auditor judgment when auditing fair value measurements. It also contributes knowledge on how inspections affect judgment in the auditing process. Finally, it provides insight to practitioners on how box-checking and similar tools affect auditor judgment. We performed semi-structured interviews with respondents who have considerable experience of fair value measurements. The empirical data was thematically analysed and related to theories on judgment and decision-making as well as structure versus judgment research. A number of interesting findings were made; auditing standards seem to be well adjusted to auditors’ needs, documentation is one of the major issues when dealing with fair value measurements and the toughness of inspections between countries seem to differ. Some potential topics for future research were identified: whether or not a gap of interpretations exists between auditors and the lawyers of inspecting entities, and what effects such a gap could have; if the documentation of both audit clients and auditors needs to be improved upon. More potential areas for future research can be found in the Conclusion.