Cost Model and Fair-value Model

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1. Assume here are two separate real estate companies: France Realty (which applies the cost model), and International Realty (which applies the fair-value model). Assume also that on December 31, 2003, each company pays €1,000 cash to obtain investment property comprising land with negligible value and an office building worth €1,000. The building has a 10-year useful life, has no residual value, and is expected to provide a constant stream of economic benefits over time. What is the accounting entry for each company for the following four scenarios:
(a) on December 31, 2003, at acquisition
(b) on December 31, 2004, assuming the investment property fair value is €1,500
(c) on December 31, 2005, assuming the investment property fair value is €1,200
(d) on December 31, 2006, assuming the investment property fair value is €600
(Show accounting entires in the separate excel file in tables and you can add revaluation model. Although it doesn’t require a step by step explanation, you do need to show understanding of the difference between models in Q1, so tables should be in separate file in excel (check it and add revaluation entries) and add some explanations for entries in word document as Q1) 25%

2. Using the above illustrations, what financial analysis challenges arise as a result of these
different accounting models? (Check the answer and rewrite it if needed) 5%

3. As the CEO of Silic, which model, cost or fair value, would you adopt? Why? (also should be rewrited if needed or add some information) 25%

4. In general, do you think the adoption of IFRS has improved financial reporting quality? Why?
What evidence do you have? Use academic literature to support your arguments.
(Check the answer and add some more sources if needed, case for literature review is also added to the materials) 40%

CASE STUDY: Silic is added to the materials, one of the sources for literature review is added

Group Cases in Acc is the file with answers should be corrected (Assignment should be no more than 2500 words)

Sample Solution

Rorschach and Ozymandias In Alan Moore’s The Watchmen

In Alan Moore’s “The Watchman”, Moore indicated two unique jobs with a shockingly comparative character to the peruser. Ozymandias is an attractive, affluent, open and incredible individual. Rorschach is an appalling, poor, private, minimal commendable individual. Regardless of every one of these complexities, they share a typical way of thinking: they accept that the outcomes demonstrate the soundness of the methods. This is the topic of the story. Moore will ask the peruser through it. By doing so you can demonstrate that the measure is right.

Watcher is a restricted release arrangement of 12 manga books by Alan Moore, Dave Gibbons and John Higgins distributed by DC Comics in 1986 and 1987. The onlooker concentrated on the six primary characters of the humorist, Manhattan specialist, keeping awake until late, Ozymandias, Rorschach, Silk Ghost. These characters were initially founded on an amazing campaign and afterward upgraded with a proactive proposition so as to oblige the superhuman quality that DC procured from the Charlton animation in the mid 1980s. Arrangement author Alan Moore introduced six “totally different techniques” to see the world and made a legend who gives the benefit to decide the ethically most justifiable thing to the peruser of the story.

Simply select a great animation star of a civilian army, Allen Moore and Dave Gibbons, security watches. Be that as it may, from an absolutely emblematic perspective, it must be Rorschach. Who is the primary photograph of Zack Snyder’s Watchmen film? Rorschach Who will rule the online on-screen character banter? Like Rorschach Punisher, Rorschach is handily viewed as a fundamentalist, a flat out faith in profound quality – not dim shade, highly contrasting, just great and insidiousness – . Nonetheless, in the possession of Moore, spot ginger Walter Kovacs is a strained, tortured, complex maker and the most vital arrangement of watchers (jail revolt, 1 individual) As a middle, you may in the end become the most realistic novel Pure job, just job – fool cautioning – not keen on yielding your own advantages for more prominent benefit

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