Analysis Of M & S

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To start with the intangible assets of M&S, the two main intangible assets of M&S are goodwill and computer software (Marks and Spencer, 2016). M&S have the joint venture partnerships with Lima (Bradford) S.à r.l. that share the Bradford distribution centre and the fair value of this derivative instruments was £2.0 million. M&S acquired the remain 50% share of Lima (Bradford) S.à r.l. on 29th of February in 2016, and this distribution centre has been fully transferred to M&S on that day. The result of this acquirement is the £6.2 million of goodwill recognition (Marks and Spencer, 2016).

As the result of this entity purchase, the distribution centre now fully belongs to M&S. After this transaction the lease agreement of the embedded
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The characteristics of fair value are relevance (Herrmann, Saudagaran and Thomas, 2006), and the estimated fair value of property, plant and equipment from actively used asset markets is reliable. The investment property fair value measurement can provide relevant information to investors in evaluating the assets. Fair value can provide predicted future information and estimate the acquisition price, moreover, property, plant and equipment can be compared by putting them in different periods with fair value measurement, which is infeasible to historical cost measurement (Herrmann, Saudagaran and Thomas, 2006). Also, The report asserts that fair value measure of most investment properties are reasonably verifiable. Instead, in the market which is a lack of active the fair value is not reliable (Herrmann, Saudagaran and Thomas, 2006). Therefore, fair value measurement is more suitable for investment …show more content…
All of the measurement for the asset will have the same result in a perfect market (Biondi, 2011). However, Whittington (2010) claims that perfect and complete market does not exist in the realistic world. Therefore, IASB fair value may not be an appropriate approach for companies with a non-current asset that relying on the historical market based, and inappropriate adoption of fair value measurement could even cause an error due to unobservable information. On the other hand, fair value aims to provide most relevant information for the stakeholders,but It is expensive that fair value acquire relevant data of non-current assets in an inactive market (Christense & Nikoleav, 2011). As it mentioned above, the reliable fair value measurement which is highly verifiable is based on an active market that has a large number of transactions or many similar items present in the market. That is the reason why many companies are not attempting to use IASB fair value to measure its non-current

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