IAS 16 is an accounting measure within the IFRS and offers two accounting models.
- The cost model in which the active is estimated on costs diminished with accumulated depreciation and special value impairments. [IAS 16.30]
- The re-valuation model in which the asset is booked on a re-valued amount, namely the fair value on the date of the re-valuation, diminished with amortizations and special value depreciations, on condition, so that the fair value can be estimated trustworthy.
Fair value valuation ought to represent the market value and need to be adjusted in case the market circumstances change. For that reason re-valuations have to be carried out regularly under the re-valuation model.
Specific knowledge to value assets means for fair value is commonly present with our RICS and Federation TMV certified valuators. Our network of professionals is also used to come to the correct valuation.