Fair value reporting

Defining expected values in fair value measurement under IFRS 13 requires a mix of scepticism and rationality, say Richard Baylis and Mark Clatworthy

In most areas of their daily work, accountants and managers have to make decisions and judgments where the eventual outcome is uncertain (and indeed may never be observed).

Questions might arise such as what is the value in use of this particular asset and how much should a cash-generating unit be impaired by? In many cases, it is necessary to rely upon expected values for the estimation of these uncertain quantities.

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