Many accounting standards require or permit fair-value measurements. Which ones are they? What do they demand? What are the basics of applying AASB 13 Fair Value Measurement? What are regulators’ concerns with fair values? What lessons can be learnt from its application?
When it comes to fair value, challenging economic environments and the risks posed by climate change may increase the degree of estimation uncertainty and management judgement. Consequently, clear and transparent disclosures become increasingly important.
This session will:
- Identify and explain the accounting standards that require using fair values
- Recap the basics of AASB 13 Fair Value Measurement
- Discuss some of the shortcomings in its application, such as in related-party transactions and need for specialist advice
- Look at disclosure practices, and
- Identify what should be in your fair-value accounting-policy paper.
