Measuring fair value in uncertain times

Even at the best of times, measuring fair value can require significant judgement and estimation. It is even more difficult now due to volatile financial markets and significant economic uncertainty resulting from geopolitical events, and rising inflation and interest rates. Although there has been much focus on the economic impact of these trends and events, the accounting impacts – including on the measurement of fair value – cannot be overlooked. In addition, there is increasing interest in how climate risk affects fair value. 

All of these factors place increased pressure on companies as they exercise their judgement and determine the key assumptions underpinning fair value measurements. Companies should pay particular attention to their disclosures about those key judgements and assumptions so that users of financial statements can understand the impact of these factors on a company’s fair value measurements. 

This edition of our Fair value measurement handbook (PDF 2.07 MB) will help you apply the principles of IFRS 13 Fair Value Measurement and Topic 820 Fair Value Measurement, and understand the key differences between IFRS Accounting Standards and US GAAP.