INTRODUCTION

Screen Clipping. INTRODUCTION. Viber. SHAZIA & RYAN FROM LAUTOKA CAMPUS.

FAIR VALUE ACCOUNTING HOW IS IT USEFUL IN THE PACIFIC SOCIETY.

abstract. KEY ASPECTS:. Definition of fair value accounting.

Definition of fair value accounting. According to IFRS 13, fair value measurement is defined as the price paid to transfer an obligation or the agreed upon price to sell an asset in a formal transaction involving market participants (buyer and seller) at the valuation date (an exit price). Some people define fair value as the asset's sale price..

View of accounting professionals on fair value accounting.

What is the recognition criteria of Fair Value Accounting.

Under the Fair Value approach itself, there are several generally accepted approaches that drive fair value, which comprise of the market, income and cost approach, an outlay of salable items under normal conditions. The advantages of FVA range from; Accuracy in valuation, the true measure of income, its adaptability to different asset types and it may help a business survive..

What is the research and study based on???. This research paper was done to determine the relevance and usefulness for Fair Value accounting to be used as the sole valuation model by which a firm would value all its assets and liabilities. The information derived from this method of valuation, would it be generally accepted and useful to its users and aid in management decisions. The quantitative characteristics are also evaluated to see if relevancy, reliability and comparability is met while using fair value measurement..

Definition of fair value accounting. Fair Value accounting refers to the valuation model used by firms whereby firms use the current and most relevant market prices to value their assets and liabilities..

Other costing valuation models. The Capital Asset Pricing Model (CAPM), which is the foundation for capital budgeting, values assets using a weighted average cost of capital (WACC). The usable average life expectancy of an asset is represented by the replacement cost, which is computed using the perpetual inventory technique. The replacement cost, derived on the basis of perpetual inventory method, the useful average life expectancy of an asset is determined the data is drawn from historic cost and current replacement to conversion cost.

Contrast between fair value accounting and historical cost accounting.

Cost approach and quantitative characteristics. To serve its purpose accounting information had to be relevant, verifiable, free from bias, comparable and faithfully represented. (Babajide Oyewo, 2020).

Approaches to fair value accounting. The market approach is established on transactions concerning similar or identical elements of assets or liabilities..

FAIR VALUE HIERARCHY. Level 1 is getting a price quote from active markets where prices of an asset is a bid and for a liability is ask and the most fairly represented price is used..

Usefulness of fair value accounting. changed the recognition rules of accounting information to include market information,.

Challenges of fair value accounting. In a case where information is unavailable a misstatement could be undetected..

fair value accounting and historical cost accounting (dual costing).

Research objectives. Model of fair value accounting.

THEORETICAL UNDERPINNINGS. About IFRS 13 and FVA characteristics.

RESEARCH METHODS. CASE STUDIES. INTERVIEWS.

SAMPLE QUESTIONNAIRE. abstract.

FINANCIALS- Reserve Bank. to part Of the.

FINACIAL no. 2- RB Patel. NOTES TO THE (CONVO) FOR THE YEAR ENOEO sO 2020.

ANALYSIS AND FINDINGS. Quantitative Characteristics and Costing Models.

Quantitative Characteristics and VALUATION Models.

Fair value accounting vs historical cost accounting.

Methods for deriving fair value measurements. MARKET APPROACH use market pricing and value cues from transactions that have really taken place involving the same or comparable entities INCOME APPROACH Determines the Current Value Of the estimated prospective cash flows that the asset or company will produce during its existence. COST APPROACH is supported by the economic principles of supply and demand, externalities, and substitution Figure 3: Approaches to Fair Value Accounting.

Fair value measurement hierarchy. Valued at prices On active of identical Valued inpu tS, 3: Liquidity Valued u Sing a financial model. Mach as a discounted cash flow _ Hierarchy.

Analysis of study. 12 10 8 6 2 Costing Model Fair Value • Historical Cost Dual costing Figure 5: Analysis Of Study Used 3 Which Costing is Useful 5 Level Of Accura 3 10 Ease Of calculation 8.

LIMITATIONS. Very few studies relating to Fiji and the pacific.

RECOMMENDATIONS. Improve on data comparability from period to period.

conclusion. FVA defined. The costing system is opposed because?.

REFERENCES. Reserve Bank Of Fiji. (2022). Reserver Bank of Fiji. Retrieved 11 13, 2022, from https://www.rbf.gov.fj/financial-statement-2022/.

The question we want to leave you with…. abstract.