Is it fair enough?


PwC has released the 2015 edition of its global guide, Fair Value Measurements. The guide helps reporting entities meet the challenges of applying the key accounting standards under both U.S. GAAP and IFRS - Accounting Standards Codification 820, Fair Value Measurement (ASC 820) and IFRS 13, Fair Value Measurement (IFRS 13). The guide describes the key concepts and requirements of these standards and include specific discussion of the impact of the fair value measurement requirements in significant accounting areas such as: • investments • impairments • business combinations • credit risk The guide provides an overall framework for the application of fair value measurements and highlights key questions and answers. One surprising omission is that no mention is made throughout the guide of the wisdom of ensuring that such valuations are compliant with recognised valuation standards. This is especially so given that International Auditing Standards (ISA 500) identifies determining whether a management’s expert is subject to technical performance standards or other professional or industry requirements as one of the criteria for the auditor when considering the reliability of estimates (including valuation estimates) in financial statements.

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