Hello,

I am studying Accounting at Western Sydney, I have this homework question on theory of fair value using AASB and other standards, I do not think you will need to know the PPE amounts in the journal as referenced. Here is the question. Thanks!

The consolidated financial statements for year ending 30 June 2018 for the economic entity were prepared on the basis of your journals from Part B (IV).

These statements were presented to the Board of Directors. The Board noted that at date of acquisition, the carrying amount of Sunnybank Hills Ltd's property, plant and equipment was not equal to their fair values and adjustment journals to these assets were accordingly prepared. The Board had the following question: 'What is 'fair value' and why is it relevant to consolidation accounting?' After a shorting meeting with your supervisor, you were requested to respond to the above question. You might make reference to relevant paragraphs of Australian Accounting Standards and/or AASB Framework and to other sources of material.