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Asked by Camryn Bergeron on May 27, 2024

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Describe the IFRS treatment of increases in the market value of property, plant, and equipment held during the year.Compare that treatment to U.S.GAAP requirements.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that is becoming the global standard for the preparation of public company financial statements.

Market Value

The ongoing value at which one can buy or sell a service or asset in the market.

  • Distinguish the valuation discrepancies of property, plant, and equipment under IFRS and GAAP.
  • Understand the IFRS treatment of increases in market value of property, plant, and equipment vs. GAAP.
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Matthijs VaessenJun 01, 2024
Final Answer :
IFRS allow companies to revalue property, plant, and equipment up to fair market value when it can be reliably estimated.A revaluation surplus is recorded in stockholders' equity for the unrealized holding gain.GAAP has no similar provision for marking up assets to market.Any holding gains are recognized only if the asset is sold.

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