Fair Value Measurement: IAS 40 vs. Exposure Draft

Because of the current credit crisis, the property market had become less active. The rising problem is how to determine the real values of the properties? The guidance on measuring fair value is dispersed across many standards and not always consistent. The IASB issued an exposure draft in May 2009 for a new standard ‘Fair value measurement' following the credit crisis. This book offers insight into the consequences of this proposed valuation standard. By a diagnostic gap analysis research the current situation will be compared with the desired situation in successful implementation. The three most important adjustments of the proposed valuation standard are extensively analyzed. The analysis should provide meaningful information about the introduction of the new standard ‘Fair value measurement' for the real estate sector, and should be especially useful for preparers and users of the financial statements in the real estate industry, or anyone else who is interested in the developments in fair value measurement and its impact on the property sector. Does the introduction of the proposed valuation standard really improve the financial statements in the real estate sector?

Michelle Dirksen (1988), The Hague. Recently graduated at Erasmus University Rotterdam with a BSc in Business Economics and a MSc in Accounting, Auditing and Control.