A term used in the International Financial Reporting Standards (IFRS) to describe the fact that, in certain cases, an asset can increase or decrease significantly in value over and above the value of a single asset being acquired or disposed of. – This would be the case, for example, if a company were to acquire just one share in a company, but this would result in a share of voting rights of more than fifty percent, and thus acquire a controlling stake position in the stock corporation. Until now, IFRS has required such linkage effects to be taken into account in the determination of fair value, and in some cases not to be recognized. These inconsistencies and conflicts are discussed in detail in the relevant literature. – See Valuability, Block trading, Single tradability, Decision usefulness, Majority interest, Package premium, Asset, Embedded.
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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