With Reference to the Measurement of Tangible Non-Current Assets, Critically Evaluate Whether Financial Statements Prepared Using Ifrs’s Provide Useful Information. Use Specific Examples from the Annual Reports of Ftse

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University of Hertfordshire | 6BUS1003 – Advanced Corporate Reporting | With reference to the measurement of tangible non-current assets, critically evaluate whether financial statements prepared using IFRS’s provide useful information. Use specific examples from the annual reports of FTSE 100 companies to illustrate your points. | | | 3rd December, 2012 |

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As the business environment grows and companies find new ways to expand into their respective - or even new – markets, it is important that reporting standards stay up to date with changes and continue to assist companies in providing their users with useful accounting information. Information is labelled as being useful when it meets the
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This leads to the statements not being faithfully represented and therefore not useful. Consequently, this will lead to the analysis of investors being misguided.
Investors require financial information to be useful for economic decision making reasons. They need to know whether they are presented with a good opportunity to buy into a company, hold on to shares previously bought or even sell their shares. Although investors are absolutely not the only other user of financial information, the Revised Statement of Principles (2010) states that they are the predominant user and so take precedence (Elliott & Elliott, 2012).
Tangible non-current assets can also be affected by impairments using a costing method. Impairments occur when an asset is valued lower than its carrying amount in the balance sheet. Value approaches rely more on impairments as they are not depreciated.
Fair value is more of a forward looking approach; a market view. Rather than involving stewardship by looking back and communicating to shareholders how you have taken care of the company’s assets, you are looking to the future to show how they will be used to generate future revenues. As mentioned, using a fair value approach does not require you to depreciate your assets however it does require you to check for impairments. IAS 16 [IAS 16.77] declares that items such as the date of revaluation, methods and assumptions used in estimating the new value and whether

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