Fair value versus historical cost valuation for non financial fixed assets : how is financial information affected?

Abstract

This final degree project is devoted to non-financial fixed assets valuation, which can basically be done following the revaluation and the historical cost models. The topic is analyzed from both a theoretical and practical perspective. I first revise the differences between the two models, as included in the IASB standards. Then, I review the main arguments that different authorized voices put forward for and against both models from the perspective of their contribution to the usefulness of accounting information. Finally, I develop a simulated case where I compare the effect of the two models on financial statements and key financial indicators.