Valuation of business

But according to the principle of conservatism, you need to consider the lower cost not the higher costs.

provide for all losses but not for gains.

yeah got it,.

So in your query you asked that why decrease of FV is not considered.'

May be there are chances that if they consider the decrease of FV then their might be Gain Arising out of such consideration.

I have replied this for the business valuation, because you said higher of cost or market value is to be connsider. my question was why higher one it is against the principle.

I hve replied the cost or market value whichever is higher for the query of share base payments of fair value consideration.

ok fine, now I'll take the case of share based payments , if you are discussing on that.

then in which costs you are comparing for??

Forget about decrease in Fair value for a minute.

Lets go with increase only.  now see the eg. that i have given in my querry. that why only increase is consider you can directly take the revise fair value.

ok fine if you are going with the topic share based payments.

then in which costs you are comparing for.

forget about decrease in fair value for a minute.

If you go with the increase, see the example given in the query once more.

my query was why the incremental part is considered , you can directly take the revised fair value.

Revised fair value may be increased or decreased.

But may be under some sections or provisions only increase is considered.