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An accounting increase arising when an asset's recognised fair value rises.
A company remeasures an item using market evidence or an appropriate valuation approach. Where the accounting standard requires the change in profit or loss, an increased asset valuation contributes to reported profit. Other standards put some changes elsewhere or use a different measurement basis. For investment property under IAS 40's fair-value model, value changes go through profit or loss; that rule does not apply identically to every asset.
Suppose an investment property carried at J$100 million is assessed at J$110 million at the next reporting date under that model. Ignoring other movements, the J$10 million increase is a fair-value gain. The property remains unsold and the company has not received J$10 million in cash. If its assessed value later falls to J$105 million, that subsequent period has a J$5 million decline.
FosRich seeks time from bondholders as restructuring talks continue