Minority shareholders dispute tang Plaza’s value

What is it about?

This case covers the framework and process to determine fair value as specified in IFRS 13. In addition, while fair value accounting may have been designed to give investors more useful information, in practice it could involve highly subjective judgment and the resulting implementation may be affected by incentives of different stakeholders. The CK Tang’s case provides an excellent opportunity to discuss incentives of varies parties in determining the fair value in financial reporting decisions. In short, this case could be a good jumping off point to talk about management and auditors’ incentives in financial reporting in general.

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