In the case, Ed Smith is the Director of Accounting at APT, Inc., a U.S.-based subsidiary of a Canadian holding company. Because APT, Inc.'s parent company is a Canadian company, APT, Inc. prepares its financial statements in accordance with International Financial Reporting Standards (IFRS), and it is Ed's responsibility to ensure that the financial statements comply with the IFRS requirements. As part of the year-end reporting process, Ed must determine if the value of one of the company's rental properties is impaired and also provide a fair value assessment of that property. Ed is well versed in U.S. generally accepted accounting principles (GAAP), but not in IFRS. Ed is particularly concerned that he complies with the requirements of International Accounting Standard (IAS) 36 (IASB 2005a), IFRS 13 (IASB 2011), and IAS 40 (IASB 2005b), and that the judgments underlying the impairment assessment and fair...

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