Fair Value Accounting In Ifrs Financial Statements

摘要

Considerable attention is currently being given to the use of fair values and fair value accounting in financial statements prepared under International Financial Reporting Standards. This month's column clarifies what is meant by fair value accounting and when IFRS require or allow its use. It also identifies the circumstances in which IFRS requires the use of fair value in the application of the historical cost model. In IFRS financial statements, fair values are used in the three circumstances: 1. to measure some assets and liabilities at each balance sheet date; 2. to measure some assets and liabilities on their initial recognition in the financial statements or on transition from national GAAP to IFRS; and 3. to determine some asset impairments. Only the first of these circumstances should be described as 'fair value accounting'. It is the only circumstance that requires annual measurement at fair value and the recognition of unrealised gains in the financial statements.