Investeringsejendomme målt til dagsværdi i klasse B virksomheder: med fokus på ”det retvisende billede”

André Lauridsen

Student thesis: Master thesis


Summary: This project concerns investment properties measured at a fair value for companies included in the class B-segment according to the Danish Financial Statements Act. In Denmark, companies’ annual financial statements must give a true and fair view according to the accounting framework. According to Danish regulations, the fair value of the valuation itself must be determined based on the market value in an efficient market. If no efficient market exists, the valuation must be calculated based on computed models, where the future cash flow is discounted to present value. In the process of discounting values to present value, the management making the valuation must undertake a considerable number of qualified estimates, including expectations for the interest level, the characteristics of the property, market development and so forth. These estimates may be the cause of concern for the user of the annual report, as the fair value can vary a great deal depending on the estimate made. Meanwhile the demands for the accounting presentation for class B-companies in Denmark are relatively expansionary, and therefore the companies who have properties at a fair value do not have to state which estimates and prerequisites are taken into consideration in the valuation. This reduces the credibility of the valuation for the user of the annual report. The overall objective of this project was to examine how investment properties should be valuated, what information the user needs, and whether an accounting guide, “Regnskabsvejledning for klasse B-og C virksomheder”, could be used as a supplement to Danish Financial Statements Act, and thereby give a more true and fair view of the financial position. The problems of this assignment were examined by comparing the differences in the requirements for accounting presentation in Danish Financial Statements Act, international standards and the accounting guide respectively. The requirements in the accounting guide were also compared to secondary studies of the specific needs for information about Danish Financial Statements Act for accounting users. Furthermore an empirical study showed the amount of annual reports in which the implementation of the accounting guide would contribute to a more true and fair view. The study included sixteen selectively chosen annual reports. The empirical study also included measurement of continuity in the annual reports by including two fiscal years, and whether appointment of auditor had an influence in the level of information.

EducationsMSc in Auditing, (Graduate Programme) Final Thesis
Publication date2015
Number of pages90