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Fair Value Measurement and Mandated Accounting Changes: The Case of the Victorian Rail Track Corporation

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  • Malcolm Abbott
  • Angela Tan†Kantor

Abstract

VicTrack in the State of Victoria in Australia began using fair value to value its assets in 2011. In doing this the company encountered the difficulties normally associated with valuing long†lived assets that are specific to their use. In this paper, a case study is presented centred on VicTrack in order to provide information on the basic difficulties of determining the fair value of assets that are long†lived, specific†to†use and in markets that are incomplete; and to better understand some of the implications of the switch from historical costs to fair value.

Suggested Citation

  • Malcolm Abbott & Angela Tan†Kantor, 2018. "Fair Value Measurement and Mandated Accounting Changes: The Case of the Victorian Rail Track Corporation," Australian Accounting Review, CPA Australia, vol. 28(2), pages 266-278, June.
    • Handle: RePEc:bla:ausact:v:28:y:2018:i:2:p:266-278
    DOI: 10.1111/auar.12171
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    References listed on IDEAS

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