In 2011, when publicly traded companies in Canada adopted IFRS, real estate companies were given the choice

Question:

In 2011, when publicly traded companies in Canada adopted IFRS, real estate companies were given the choice of using cost or fair value to account for their real estate portfolios. Th is was not an easy decision for real estate companies to make as there were advantages and disadvantages to each choice. In the end, while many companies chose to revalue their real estate portfolios to fair value, others chose cost.
Instructions
(a) Identify the advantages and disadvantages of each of the two bases of measurement: cost and fair value.
(b) Speculate as to why a company might choose to adopt the fair value basis of accounting for its real estate portfolio.
What impact do you think this will have on the elements of its Speculate as to why a company might choose to adopt the cost basis of accounting for its real estate portfolio. What impact do you think this will have on the elements of its Do you believe you could effectively compare the of two competing companies using different bases of measurement?
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...