Fair value accounting believes in providing actual financial conditions prevailing in the market by adjusting the financial and non-financial assets (Akono, Karim and Nwaeze, 2019). But many investors, auditors, and analysts have shown negative sentiment towards the mark-to-market model. One of the most significant drawbacks of fair value accounting relative valuation to value the assets instead of using cash flow (Da and Warachka, 2009). To establish the value of the assets, IFRS - 13 set three valuation approaches which are explained in the table below.
Table 2 IFRS - 13 Valuation Approaches
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