Financial accounting/ Asset valuations

Valuations for

Financial accounting/ Asset valuations

Fair Value

International Financial Reporting Standards (IFRS) requires that company annual accounts should contain non financial assets at their Fair Value than Market Value.

The IFRS defines Fair Value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

A Fair Value measurement is for a particular asset or liability. Therefore, when measuring Fair Value an entity shall take into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Such characteristics include, for example, the following:

  • The condition and location of the asset; and
  •  Restrictions, if any, on the sale or use of the asset.

A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The highest and best use of a non-financial asset takes into account the use of the asset that is physically possible, legally permissible and financially feasible.

We have the expertise and knowledge to provide comprehensive property valuation reports for inclusion in the annual accounts.  Valuations of this kind comply with the International Financial Reporting Standards (IFRS 13).

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