| Summary: | 碩士 === 國立臺北大學 === 會計學系 === 103 === Since 2013, the listed and OTC companies have begun to implement International Accounting Standards (IAS) in Taiwan. Due to implementation of the new accounting standard, the real estates which used to be recognized as fixed assets were reclassified under “Investment Properties” according to the definition of IAS40 (Investment Property). However, the Financial Supervisory Commission (FSC) had misgiving about the excessive volatility of fair value caused by the imperfect evaluation system on the subsequent evaluation of investment property. Therefore, the FSC had only allowed businesses to adopt cost model on subsequent evaluation of investment properties, rather than allowed them to select between cost model and fair value model according to IAS40. After the first year of IFRS implementation, the FSC announced that the subsequent evaluation methods of investment property returned to IAS40 rules, allowed businesses to adopt fair value model and select accounting policies. For the industries which hold large amounts of investment properties, the asset value will increase greatly by adopting fair value model. However, so far there have been only 24 listed and OTC companies adopting fair value model, which is a small proportion. In this study, we conduct the pooled analysis on the financial reports of the companies which have adopted fair value model on investment properties. We discuss on the reasons why fair value model has not been generally adopted on investment properties by means of financial report induction and interviews, and provide suggestions and solutions to the current status of implementation.
Keywords: Investment Property , fair value model, measurement after recognition
|
|---|
