Handbook: Fair value measurement

Fair value measurement in a changing landscape 

Economic, technological and regulatory developments continue to reshape the business landscape. Companies are navigating the rapid adoption of artificial intelligence, ongoing geopolitical and trade-related uncertainties, evolving tax and regulatory frameworks, and continued shifts in capital markets. For example, recent developments in the market of private credit have heightened regulatory focus on valuation practices and approaches used for private credit assets. These developments may affect the judgments, inputs and assumptions underpinning fair value measurements and increase the complexity of valuation analyses.

In this environment, transparent financial reporting remains critical. Investors, regulators and other stakeholders continue to focus on the quality of information provided about significant judgments, valuation techniques and measurement uncertainty. A company’s reporting needs to explain its specific circumstances in the context of its corporate story. Providing clear and decision-useful disclosures helps users understand how current market conditions are reflected in a company’s fair value measurements.