Numerous articles claim that implementation of ias 41

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implemented in the service palette in addition to closing of the books. Numerous articles claim that implementation of IAS 41 means ambiguity and even errors in estimating the fair value, especially in using ‘the present value of expected net cash flows from the asset discounted at a current market-determined pre-tax rate in determining fair value’ (IAS 41.20). It turned out that growth models predict future volumes by roundwood assortment with great precision. Moreover, market prices of forest holdings suggest a 4% discount rate without greater uncertainty. Although future stumpage prices are uncertain, the closing of the books can be seen as a really good estimate of the finances of the forest holding. The solutions developed and results belong to a larger service called EconomyDoctor (2008). For the time being, farms can already use EconomyDoctor as an extranet service and read all the results on their own and the average results of the reference groups. This existing service could also be used for forestry book- keeping results as well. In the case of forestry accounting, the availability of a forest management plan (FMP) and of the MELA FMP software as well as the MARTTI accounting system together with the application of IFRS means a quantum leap improvement in the information service compared with the present level.
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Working Papers of the Finnish Forest Research Institute 93 31 All the results are based on the benefits of earlier research and the development of a profitability book-keeping service, growth models, and forest management planning systems, which typically have a century of tradition. The information and communication technology (ICT) capabilities of both institutes have enabled the development work. In practice, the key problem and challenge is the availability and processing of forest management plans (FMPs) and their updates. When offering the service to a greater number of users, machine readable FMPs are perhaps needed as a prerequisite. The International Financial Reporting Standards (IFRS) finds its theoretical foundation in the neoclassical theory of value and income (Hitz 2007, p. 332), according to which the accounting information provided by financial statements must enable decision-making or allow the optimal allocation of resources. This notion leads to ‘fair value’, which first appeared in IAS 16 [1982] where it was used to measure the cost of property, plant and equipment acquired in exchange for another asset (Cairns 2006, p. 11). The fair value accounting (FVA) of IFRS might bring about a change in management philosophy and in the strategy of management of the firm. Risk management will be an integral part of business management and will involve consistent investigation of local as well as global market trends and the use of new hedging methods (Barlev and Haddad 2003). However, according to Elad (2007) FVA reinforces commodity fetishism by forging a link between accounting and market values, because it ignores the social and environmental relations of production that underlie the market exchanges. At present, no sound theory is offered for generalising the fair value
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