Primary Task Response: Within the Discussion Board area, write 400-600 words tha

Question

Primary Task Response: Within the Discussion Board area, write 400-600 words that respond to the following questions with your thoughts, ideas, and comments. This will be the foundation for future discussions by your classmates. Be substantive and clear, and use examples to reinforce your ideas: Accounting for nonfinancial assets will experience some major changes with the convergence to IFRS. One of the key issues will be that of fair value. Research this topic, and give your argument for or against the use of fair value for the nonfinancial assets of a company

Explanation / Answer

Non-financial assets consist of Tangible assets(Land, machinery, furniture etc) which have a physical value for the organisation. The best method to record these assets is 'Historical cost' method, rather than 'Fair Value'method, because the Fair value concept uses the value that can be received from selling the asset in current market environment, which is not correct for assets of long term use by the organisation, so the best approach is to use net book value of the assets.

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