The Quality of Fair Value Measures for Property, Plant, and Equipment

摘要: Based on Statement of Financial Accounting Concepts (SFAC) No. 2, this paper argues for fair value measures property, plant, and equipment challenges the primary arguments in support maintaining current status quo United States - strict historical costs all unless asset is impaired. We first provide a summary valuation internationally noting that revaluations to are an acceptable practice under international many national accounting standards. also brief perspective where prior 1940 upward was alternative. then evaluate versus cost based qualitative characteristics information SFAC 2. argue superior predictive value, feedback timeliness, neutrality, representational faithfulness, comparability, consistency. Verifiability appears be sole characteristic favoring over value. Finally, we address key measurement concepts equipment. The could learn from practices already established other countries financial reporting standards by reconsidering