IAS 38 IAS 36

For accounting analysis, it is important to examine whether certain assets may be understated or overstated.

(a) For which assets of the cruise company you would expect the fair value be different from the carrying amount on the balance sheet? (b) How does the company determine the fair values of the ships and trademarks for which no active markets exist? (c) Why is it necessary to calculate the net realisable value and is this necessarily the same as fair value? (d) Explain the concept of cash generating units and answer for the cruise ship company the question what would be the lowest level of identifiable cash flows that are independent of the cash flows of other assets?