Non-financial assets
In this lesson, you'll learn how to fair value non-financial assets under IFRS standards—a key skill for Financial Reporting and Advanced Financial Reporting papers.
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In this lesson
- 0:00 Non-financial assets fair value overview
- 0:13 Highest and best use principle explained
- 0:24 Four feasibility criteria for valuation
About this lesson
Fair valuation of non-financial assets is based on the highest and best use by a market participant, which means you need to consider what uses are physically possible, legally permissible, and financially feasible. Importantly, legally permissible doesn't mean currently approved—you can base valuations on potential future uses (such as those awaiting legislation) as long as they're legally permissible. This approach ensures you're maximising asset value while staying within the framework of what a hypothetical market participant would actually do with the asset.
Duration: 1m
Transcript
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