Comparative Analysis Of Fair Value And Historical Cost...

Title: Comparative Analysis Of Fair Value And Historical Cost Accounting On Reported Profit: A Study Of Selected Manufacturing Companies In Nigeria. (BESSONG, 2012) Study the importance of historical value and fair value cost accounting on reported profit. The study discussed how fair value accounting and historical cost accounting will have effect on the reported profit. However it is said that key objective of any business is to earn profit and it is also equally important to report the profit. Especially it is more important to record profit carefully during inflationary period. However they have study the reported profit and effects of fair and historical value by collecting data from both primary and secondary source. Therefore it is found that historical and fair value both is equally important and both have significant effect on the reported profit. Therefore operating profit of the company is influenced by the amount that is paid for taxes, dividend and depreciation. Therefore accounting methods are very much important in measuring the profit of the company and company must prepare their finical report by using the fair value and historical cost method simultaneously. However, true financial position of the company or business can be easily calculated by using the accounting methods that are more reliable and accurate. Therefore companies must use both historical and fairly value method to know the actual financial position of the company. However accountingShow MoreRelatedEvaluation Of The Co Operative Bank2647 Words   |  11 Pagesbetween Historical Cost and Fair Value with Impairment X Reference X â€Æ' Part 1 Impairment Review for Tin Plc (a) Tin Plc cash generating unit and impairment loss on the 31 December 2013. Notice: CGU=cash generating unit; VIU=value in use; Net selling price ( £Ã¢â‚¬â„¢000) =3,250,000-250,000=3,000,000 Carrying value ( £Ã¢â‚¬â„¢000) =4,000,000-440,000=3,560,000 (b) Allocation of the impairment loss between the relevant components of the net assets of Tin Plc. Calculation of impairment and revised values ( £Ã¢â‚¬â„¢000):Read MoreDifference Entre Ifrs Us Gaap Swiss Gaap Fer6026 Words   |  25 Pagescommonly found in practice. When applying the individual accounting frameworks, readers should consult all the relevant accounting standards and, where applicable, their national law. Listed companies should also follow relevant securities regulations. IFRS and US GAAP are globally acknowledged accounting standards for which a broad range of theoretical background, interpretations and literature is available. 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