04-08-2008, 08:16 PM
Yeah estimates and judgments are always subject to a certain degree of subjectivity.
"However, in practice, wherever such terms are not finalized, companies don't calculate the fair values and don't make the adjustments required under IAS 39 to state such financial liabilities on fair value initially."
I believe that the onus is on the auditors to require the managements to do what is correct. It is only this way, we can change the practices, otherwise, these incorrect practices will prosper never letting the right approach to be followed.
Kind regards,
"However, in practice, wherever such terms are not finalized, companies don't calculate the fair values and don't make the adjustments required under IAS 39 to state such financial liabilities on fair value initially."
I believe that the onus is on the auditors to require the managements to do what is correct. It is only this way, we can change the practices, otherwise, these incorrect practices will prosper never letting the right approach to be followed.
Kind regards,
