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IAS 40 Förvaltningsfastigheter: En studie om vad värdering till verkligt värde av förvaltningsfastigheter kan få
Örebro University, Department of Business, Economics, Statistics and Informatics.
2008 (Swedish)Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
Abstract [en]


Effective January 1, 2005 publicly listed companies were obliged to adopt a new financial

reporting standard (IFRS/IAS). The objective of IFRS/IAS was to increase transparency and

comparability in financial reports between companies. The authors have chosen to write about

IAS 40 where the accounting treatment for investment property and related disclosure

requirements are regulated.

The purpose of this thesis is to investigate potential effects of valuation of investment

property at fair market value for real estate companies at times when market price decreases

and to investigate what an acceptable difference for the valuation could be.

To fulfil this purpose the authors have chosen a qualitative method interviewing accountants,

property analysts and a credit analyst to obtain a deeper understanding of the problem. Base

data for the thesis have been collected during meetings, telephone interviews and e-mails.

Additional data was collected from public available sources such as the internet, relevant

professional magazines and professional newsletters. The authors have designed a model

showing how Income and Balance Sheet statements are influenced by changed valuation of

investment property. Our model is meant to show what consequences changes is property

valuation may have for real estate companies.

When companies are using a fair market value the outcome will mainly be influenced by

changed value of the investment property. Exacly how a downturn in the economy will

impact property companies is impossible to forecast, but the authors have concluded that there

is an increased risk of higher losses compared to the situation before implementation of IAS

40. The authors have concluded that there is no defined limit for how much one valuation

may differ from another. Our respondents have all assessed an acceptable difference to be five

to ten percent. When a decreased value of a couple percent of investment property may

eliminate the profitability in a company, the authors have identified a significant risk for

management teams to advocate an adjusted value of the property to increase profit or to

decrease losses.

Place, publisher, year, edition, pages
2008. , 47 p.
Keyword [sv]
IAS, IAS 40, Förvaltningsfastigheter, Redovisning
National Category
Business Administration
URN: urn:nbn:se:oru:diva-4884ISRN: ORU-HHS/FEK-GK-2013/0037--SEOAI: diva2:139186
Subject / course
Social and Behavioural Science, Law
Available from: 2013-05-02 Created: 2011-10-18 Last updated: 2013-05-02Bibliographically approved

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