Contact us Learn more about us globally Italy Our consultancy The areas of activity Who we are Our offices around the world Library Our consultancy > Determination of the fair value for lAS purposes Share Bookmark E-mail Print Determination of the fair value for lAS purposes A consultancy that facilitates the transition from national to international accounting standards, through the correct determination of the fair value of fixed assets. Fair Value - defined as the value at which an asset can be exchanged, or an extinguished liability, between free and aware third parties - is one of the basic concepts of the logical framework of the IAS (International Accounting Standards) and introduces, in the Italian financial statements strongly anchored to the historical cost, an innovative element: the "vitality" of the asset. IAS 16, which concerns tangible fixed assets, assigns a life to the asset, which takes place within the company in which the asset operates. As such, from its inception the asset bears additional costs (site preparation, transport, installation, testing) which are added to its purchase cost and reflects costs - typically, the restoration of the site - and revenues - the its residual value - which will necessarily supervene upon the termination of its usefulness. Fair value differs from asset value in that it is an abstract and neutral value . The reference market , in fact, must be free, active, potentially without borders, while that of the current use value is the contingent and limited market, sometimes static or non-existent. Furthermore, in determining the Fair Value, the conditioning elements (for example, the purchasing power, the synergies) of a real transaction must be neglected, which, on the other hand, in determining a current value, take on an important weight. This obviously makes Fair Value an almost virtual value, which has the sole purpose of representing the real economic conditions of the company for the benefit of those who, on the basis of this information, must make important decisions and must be able to follow, in time, the evolution of the conditions themselves. American Appraisal Italia assists the Client in the delicate moment of the transition to international accounting standards, according to the procedures required by the IAS / IFRS and in particular according to the principles of IAS 16, through: the determination of the "Fair Value" by applying the "component approach" , on the basis of which the components of significant value and differentiated life expectancy assume their own identity. the determination of the useful life and residual life of the asset, to verify the statutory, fiscal and operational depreciation rates. the allocation of the "Fair Value" on individual assets. The advantages for our customers an outsourcing of part of the responsibilities and procedures related to the transition to the IAS. a more transparent representation of the corporate assets, thanks to an independent evaluation. the availability of a decision-making tool for verifying asset depreciation policies. Our Consulting Estimate for insurance purposes - Direct damage Technical Control for the issue of the Decennial Posthumous Policy - EQC Division Preventive estimate for insurance purposes - Damage from business interruption Asset valuations Determination of the fair value for lAS purposes Advisory Corporate Finance Assistenza nella gestione cespiti Certificazione per I'esportazione di beni usati Privacy / Terms of Use / Corporate Governance / Company Info American Appraisal Italia acquisisce EQC – Engineering Quality Certification/Valuation/Transaction Consulting/Real Estate Advisory/Fixed Asset Management © American Appraisal 2015 This site is powered by the Northwoods Titan Content Management System