Im trying to research concept of asset revaluation and would appreciate if someone could summarise this for me as im confusing myself as to what it means! I read someone businesses want this process as it means they pay less tax if values go down, but is this mandatory, or is it part of SOX? Is it linked to new international reporting standards?
Also theres a concept of reporting on environmental impacts which some firms must "apply or explain", but again what does this come under?
so fair value accounting is linked to IFRS?
Inventories isn't a good place to start looking as it is usually held at cost which is less than market value or fair value.
Think about what assets you can hold for the long term and revalue- PPE, investment property, intangible assets, financial assets.
SOx is all about internal control, it doesn't have anything to do with reporting standards.
CAREFUL- The FSA and (in conjunction with rest of EUROZONE) are set to announce new procedured for fair value accounting, is set to turn the current IFRS guidelines out of the window and bring them more in line with SEC requirements.
I have not looked into it enough... but I do know that the Big 4 are all falling over themselves to understand it... good luck