When the star performer in a troupe of seals died, the accountants were left in a quandary. David Callaghan explains why asset valuation under IFRS can be a tricky balancing act
The use of international standards has set accountants many tricky problems to resolve. One of the biggest is how to quantify, in cash terms, those assets that do not have an easily calculated monetary value.
Take, for example, the accountants in Hong Kong whose client was a zoo, managing its stock of whales as a ‘global entity’. When one of the whales died, the question arose as to how to treat this loss, as individual animals didn’t have a value. The only conclusion the accountants could reach was that the whale had to be written off.
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