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Deprival Value and Fair Value: a Reinterpretation and a Reconciliation

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dc.contributor.author van Zijl, Tony
dc.contributor.author Whittington, Geoffrey
dc.date.accessioned 2007-11-20T22:42:47Z
dc.date.accessioned 2022-07-05T02:29:07Z
dc.date.available 2007-11-20T22:42:47Z
dc.date.available 2022-07-05T02:29:07Z
dc.date.copyright 2005
dc.date.issued 2005
dc.identifier.uri https://ir.wgtn.ac.nz/handle/123456789/18614
dc.description.abstract Two alternative measurement bases that have appeared in accounting standards, Deprival Value (sometimes called Value to the Business) and Fair Value, are explained and compared. They are then reconciled by making the following three adjustments to their conventional definitions. (1) In the case of Deprival Value, situations in which net realisable value exceeds replacement cost imply that there is a profitable redevelopment or redeployment opportunity, so that net realisable value is regarded as the appropriate measure of Deprival Value. (2) In the case of Fair Value, transactions costs (including installation and removal costs) are added to acquisition values and deducted from disposal values. (3) In the case of Fair Value, it is assumed that net realisable value represents the “highest and best use”, except when it is exceeded by both replacement cost and value in use. In the latter case, “highest and best use” (and therefore Fair Value) is inferred by assuming profitmaximising behaviour by the owner. It is suggested that the resulting synthesis represents a method of current valuation which is consistent with the objective of measuring the asset in terms of the economic opportunities that are available to its current owner in the condition and location in which it is currently to be found. en_NZ
dc.format pdf en_NZ
dc.language.iso en_NZ
dc.publisher Te Herenga Waka—Victoria University of Wellington en_NZ
dc.relation.ispartofseries No. 16 en_NZ
dc.relation.ispartofseries Working Paper en_NZ
dc.subject Asset valuation en_NZ
dc.subject Estimation method en_NZ
dc.subject Valuation measures en_NZ
dc.title Deprival Value and Fair Value: a Reinterpretation and a Reconciliation en_NZ
dc.type Text en_NZ
vuwschema.contributor.unit Centre for Accounting, Governance and Taxation Research en_NZ
vuwschema.contributor.unit School of Accounting and Commercial Law en_NZ
vuwschema.subject.anzsrcfor 150199 Accounting, Auditing and Accountability not elsewhere classified en_NZ
vuwschema.subject.marsden 350100 Accounting, Auditing and Accountability en_NZ
vuwschema.type.vuw Working or Occasional Paper en_NZ
vuwschema.subject.anzsrcforV2 350199 Accounting, auditing and accountability not elsewhere classified en_NZ

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