ICB requires that students write a 40 - 60 page dissertation to complete their National Diploma for Financial Accounting. This is my final product. It was tough writing a dissertation as I studied via distance learning and therefore had not previously done anything like this. I passed on my first a...
submitted in fulfilment of the requirements for the National Diploma:
FINANCIAL ACCOUNTING
(SAQA ID: 20366)
October 2023
DECLARATION BY STUDENT:
I declare that this mini-dissertation submitted by me, is my own work, that I have referenced all
the sources that I have used and that no part was previously submitted at any tertiary institution.
Signature: Date: 29 October 2023
, Table of Contents
Abstract 1
Introduction 3
Brief Overview - IAS 40 6
Positive International Critique With Respect to the Standard (Perceived Strengths) 9
Negative International Critique With Respect to the Standard (Perceived Weaknesses) 17
Practical evidence - Positive International Critique 24
Practical evidence - Negative International Critique 29
Recommended Improvements to IAS 40 32
Conclusion 40
List of references 41
, Abstract
The purpose of this dissertation is to thoroughly examine IAS 40 : Investment Property. This
includes an overview of the standard such as the definition, classification, method of
measurement and further information relating to the IFRS Foundation as a whole.
Thereafter research will be presented on the positive and negative international critique
expressed by critics which will then be supported through practical evidence given to
substantiate the claims. As a result, a summary of the improvements will be detailed taking the
discussion on the entire topic into consideration.
IAS 40 : Investment Property is a part of the International Financial Reporting Standards (IFRS)
framework. This dissertation aims to provide an evaluation of the feedback, on IAS 40
discussing both its positive and negative aspects while also suggesting practical strategies for
improvement.
The positive feedback regarding IAS 40 recognizes the impact it has on management's ability to
make sound decisions with the resources of the business by having an accurate understanding of
the assets, particularly investment property owned by the business. Additionally, the positive
effect IAS 40 has on determining whether a business will attract collaborators and investors both
on a local and global scale.
On the other hand, the negative feedback focuses on the difficulties faced by preparers, auditors
and regulators when implementing IAS 40 effectively. Critics argue that the complex fair value
measurements prescribed by the standard can be manipulated and inconsistent thereby
undermining the quality and reliability of statements. Furthermore, there have been concerns
raised about guidance for types of investment properties and a need for more detailed disclosure
requirements.
1
, In summary, this dissertation adds to the discussion on IAS 40 by providing an assessment of its
international criticisms and suggesting practical ways to make it better. By considering both the
strengths and weaknesses of the standard it aims to promote and discover the pathway to the
enhancement of reporting in relation to investment properties thereby building trust in the
worldwide financial markets.
2
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller jasmineannies. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $20.84. You're not tied to anything after your purchase.
