Inviting discussion on FVM

M interested ..

i am always interested in all discusson on ifrs

When ru going to Start Narayan?????????

1) Fair value is required to be estimated by determinig the assumptions of the market participants ( mainly market particaipants from the asset's principal market.

2) The exposure draft proposes that fair value of an asset should be measured at its best use value. If current use value differs from best use value, then the current use value and the incremental value (difference) should be disclosed and the reason for not putting the asset to its best use should be disclosed.

3) The ED proposes classifying asset accorging to hierarchial level of input used which is as follows -

a)  Level 1 Inputs - Quoted price of similar asset.

b)  Level 2 Inputs - Quoted price of identical assets

c)  Level 3 Inputs - Using observable inputs requiring significant adjustments and  unobservable inputs (ie. entity's own assumptions about market participants.

The levelling approach is similar to FAS 157.