=+SA 15-1 Benefits of fair value International Accounting Standard No. 16 provides companies the option of valuing property, plant, and equipment at either historical cost or fair value. If fair value is selected, then the property, plant, and equipment must be revalued periodically to fair value.

Under fair value, if there is an increase in the value of the property, plant, and equipment over the reporting period, then the increase is credited to stockholders’ equity.

However, if there is a decrease in fair value, then the decrease is reported as an expense for the period.