SSAP 23 - An emerging issue?

Article Abstract:

SSAP 23, issued in Great Britain in April 1985, establishes when consolidated financial statements should reflect fair values arrived at using acquisition accounting, and when reported values should reflect merger accounting values (which are a combination of nominal and fair values). Accounting options available under each method of accounting, and use of the standards by corporations filing reports are discussed. The consolidated reporting methods used by two British firms, Ladbroke Group PLC and Pleasurama PLC, prior to the promulgation of the new accounting standard are described to illustrate why the standard's development was necessary.

United Kingdom, Acquisitions and mergers, Corporation law, Corporate reorganizations, Corporations, British

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Time to get off the beaten track

Article Abstract:

The straight-line depreciation method should not enjoy its current near-monopoly, authoritative accounting sources suggest. Other approaches such as the annuity method are well established in textbooks, but apparently not used much in practice. Support for using a more imaginative and more difficult approach than straight-line depreciation is given in Statement of Standard Accounting Practice (SSAP) 12. SSAP 12 includes an explanatory note that says there exists a range of acceptable depreciation methods and that although the straight-line method is easy to apply, it may not always be the most appropriate technique.

Depreciation

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Valuations in company accounts

Article Abstract:

A solution for the problem of valuations in company accounts is proposed. The method presented is based on historical cost accounting, but also provides information on the valuations of the firm's assets as a whole and valuations of individual assets. The company's main accounts should be based on historical cost, and there should be a supplemental 'valuation balance sheet' that shows the fair value of the firm's assets and liabilities. At the balance sheet date, there should also be a statement of the firm's market capitalization that shows the difference between the capitalization and the valuation balance sheet.

Valuation

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