THE EVOLUTION OF THE DEFINITION OF FAIR VALUE IN IFRS
THE EVOLUTION OF THE DEFINITION OF FAIR VALUE IN IFRS

Summary/Abstract: The implementation of International Financial Reporting Standards (IFRS), particularly in the European Union, has led to frequent comments that IFRS are ‘fair value-based standards’ and that the IASB is moving inexorably towards full fair value accounting. There appears to be a widespread belief that IFRS require all assets and liabilities to be measured at fair value and all the resulting changes in fair value to be included as gains and losses in the income statement. As this paper will show, these views suggest a lack of understanding of, and confusion about, IFRS. They also bring into question the understanding and application of existing national Generally Accepted Accounting Principles (GAAP) and historical cost accounting.

• Details
• Contents