Fair value in a time of change

The principles of IFRS 13 Fair Value Measurement and ASC Topic 820 Fair Value Measurement have been tested by COVID-19, but they remain steadfast. Preparers have been able to apply the principles to their unique circumstances and estimate fair value in an unpredictable and stressed environment. Nevertheless, there are some potential changes on the horizon.

Valuation practices continue to evolve, partly as a result of standard setting activities and partly because of the increasing attention being paid to how climate-related risks (and opportunities) and reference rate (IBOR) reform affect the components of a valuation – e.g. cash flow projections and discount rates.

This edition of our Fair value measurement handbook  (PDF 2.3 MB) will help you apply the principles of IFRS 13 and Topic 820 and understand the key differences between them.