Fair Value of an Entity’s Property, Plant and Equipment for First- Time Adoption of ASPE

By CPA Canada
Published: May 2014

A Business Valuator’s Perspective

ASPE provides financial statement preparers a one-time option that allows an entity to measure an item of property, plant, and equipment (PP&E) at its fair value as of the date of transition.   The articles is intended to help practitioners explore some of the practical issues involved in the fair value measurement of PP&E in the context of applying ASPE. The decision of using this transitional option, and to measure fair value of PP&E if elected, lies with management. The views expressed by the authors in the articles are helpful to understand the implications of measuring PP&E at fair value at transition date and the possible methods to measure it. 

Fair Value of an Entity’s Property, Plant and Equipment for First- Time Adoption of ASPE — A Business Valuator’s Perspective