Essay about Definition Of Fair Value Measurement

836 Words Nov 15th, 2016 4 Pages
It is important that financial statement to be relevant, transparent and truly represent the financial information in the accounting principle, therefore, updating clear and new accounting regulations and formulas is imperative in the fickle market. IFRS is used in around 100 nations (K and J, 2009), which is set by The International Accounting Standards Board (IASB) engages a close relationship with the stakeholder all over the world. In 2011, IASB issued IFRS 13 fair value measurement aim to remedy the guidance contradictions in the past and improve the consistency and comparability in fair value measurement (Ernst & Young, 2012). Marks & spencer (M&S) will be the specific business case in this report to illustrate fair value measurement and this report attempt to divided into three main sections, at first it will introduce the concept of fair value and the three hierarchy of fair value. The second part will demonstrate some problems of performing fair value approach when it measuring non-current assets in the case of M&S and alternative valuation methods applied by M&S are shown. The final part will give a view of IASB’s approach to fair value measurement on the practical market.

Fair Value
Before 2011, there has no a unified definition for fair value measurement, therefore, the IASB set up IFRS 13 as a single definition for all the companies to apply the fair value measurement, in order to improve the comparability and consistency in the financial report (Deloitte,…

Related Documents