A company has according to 440 40 the eissertation to choose between internal —or external valuation when estimating the fair value. It may include eg previous versions that are now no longer available.
Valuation in compliance to the fair value model on the other hand means that the investment property shall be valuated to market ias 40 investment property dissertation. Obstacles to overcome when establish a more harmonized accounting in the EU is for example different accounting backgrounds and valuation methods. By analysing the annul reports from the investment property companies we found indications that the fair value model also tends to become the generally excepted valuation model in Germany.
However, we believe that in order to achieve a more harmonized and more comparable accounting for listed investment property companies within in the EU a directive about a minimum of external valuation must ias 40 investment property dissertation included in IAS This in order to avoid companies to use only internal valuation of the properties ias 40 investment property dissertation this may effect the result.
This can be viewed as obstacles to achieve a total harmonization of the accounting within the EU for listed investment property companies. The effects of the implementation of IAS 40 for listed inve From our empirical findings we draw the conclusion that the fair value model tends to become the generally investmennt valuation model within the EU. There are two alternative valuations methods according to IAS 40, the cost —and the fair value model.
We have used primary data in forms of interviews, ias 40 investment property dissertation secondary data in forms of annual reports, regulations, literature and articles in the thesis. This is necessary to create an effective capital market, where comparisons between companies located in different countries can be made, due to a more harmonized accounting. In England and Germany all investment property companies disserhation external valuation and there ijvestment no use of internal valuation even as a complement to the external valuation.
The purpose of the thesis is to as far possible study whether the establishment of IAS 40 contributes to an increased harmonization and dissertatino comparable accounting of investment property for listed companies ias 40 investment property dissertation the EU. Empirical results and analysis: The increased globalization and trade over domestic borders within the European Union EU has lead to the implementation of new international accounting standards.
Using both primary —and secondary data results in a higher reliability and validity. The cost model means a valuation to historical cost minus depreciation. Furthermore, our empirical result shows that a majority dsisertation the Swedish investment property companies regularly used internal valuation, but there is a pattern of external valuation as isa complement to the internal valuation.
This thesis involves both a quantitative —and a qualitative research method. Our empirical ias 40 investment property dissertation is presented mainly through annual reports from listed investment property companies in Sweden, England and Germany.
Based on our empirical results we draw the conclusion that the accounting for listed investment property companies within the Propperty is more harmonized and comparable today than before the implementation of IAS innvestment in When using the cost model a note of the fair value shall be included in the financial statement.
The number dissertatoin downloads is the sum of all downloads of full ias 40 investment property dissertation. However, IAS 40 gives the companies the possibility to decide weather to use the cost —or the fair value model and the use of external valuation is optional.
Also, we do not perceive the use of the cost model as a barrier to the harmonization process because the fair value still has to be left in a not in the ias 40 investment property dissertation statement.
We found that the disxertation value model was used by all the analysed companies in Sweden and England inthe year of the implementation of IAS 40 in the EU.