Modern Equivalent Asset Value

s.tarbuck@tesco.net

I work for a charity and have heard rumblings about a new depreciate charge called modern equivalent asset value.

I don't know anything about it or whether it is of use to us or not, but would be grateful if someone could explain in plain English what this is all about, how it would be implemented and whether it might benefit us?

Many thanks,

stevef

Not heard of modern equivalent asset value. Under IAS 16 the gross book value of fixed assets should be calculated as their 'Fair Value' which in most cases is 'Equivalent Use Value' or EUV. And in turn EUV is usually Market Value. If there is no market for the asset Fair Value may have to be estimated using a depreciated replacement cost approach.

In the Public sector the exception to this is the valuation of infrastructure (roads, bridges etc), community assets and assets under construction, these are valued at historical cost.

Bookworm55

s.tarbuck@tesco.net wrote: »

I work for a charity and have heard rumblings about a new depreciate charge called modern equivalent asset value.

Is "modern-equivalent asset value" just a fancy way of saying replacement cost?