The Thesis deals with the accounting treatment of investment properties and especially the fair value calculation like the DCF-model and Return-based model. Since the financial crisis in 2007 properties has got a lot of attention and the value has risen above the former level. The rule that gives companies the opportunity to use fair value measurement has changed to be a bit less strict, so all danish companies measure their investment properties with fair value. This could result in some high valuations. We have the hypothesis that the fair value of investment properties in the Annual Reports for danish companies is closely comparible to the value and development in realized sales prices. We will in this Thesis compare the fair value of investment properties in some chosen danish companies with each other and with the generel price development for compareable properties.

In the first chapters we wil focus on the generel accounting standarts regarding investment properties, mainly from the Danish Financial Statements Act and where it is deficient the International Accounting Standart will be applied. To fully understand the rules regarding fair value messurement the Thesis has also some supporting theory but not to comprehensive.

With the knowledge from the first part of the Thesis, in the middle part there will be an analysis of the real estate development in Denmark and then an analysis of the development in the fair value for the investment properties in 5 chosen companies who have investment in properties as their main activity. At last in the analytical part we will look into the demands in the Danish Financial Statements Act regarding key conditions for the fair value accounting, and if the demands are meet by the chosen companies.

With the findings from the analysis there will be a conclusion whether the fair value accounting and valuation is made accurat and valid in the chosen companies and however they meet the rules for informations of the central conditions of the fair value.