Importance The research deals with methods for formulating the relevant cost concept. The methods are based on comparison of IFRS 13 Fair Value Measurement and the Russian regulations on valuation. Objectives The research aims at articulating methodological guidelines On Valuation of assets and liabilities at relevant cost. In this respect, the research pursues the following objectives: to substantiate the need to apply modifications of fair value in the Russian financial reporting practice in transition to IFRS; to formulate a relevant cost concept of financial and non-financial assets and liabilities; to identify the main components of the relevant cost concept. Methods I develop the methods for relevant cost measurement, using a practical example of forming a relevant cost of non-current assets of a gas production company within Gazinvestment Group. Results The notion of cost is reviewed against various theories: cost of labor, surplus value, theory of value that classical scholars in political economics developed. The article scrutinizes IFRS 13 Fair Value Measurement in terms of active market, market actors and hierarchy of fair value sources. I find out that the methodological guidelines set forth such valuation methods as market, income and cost valuation methods from practical perspectives. Special attention is paid to the market method, which is examined in terms of market value measurement in the Russian Federation. Conclusions and Relevance Upon examination of the methods for relevant cost measurement, I propose draft methodological guidelines On Valuation of assets and liabilities at relevant cost. I identify new components of relevant cost, thus providing a more detailed structure of the concept. Using a practical example, I demonstrate how the levels of the analytical part of the retained earnings account improve the efficiency of converting the market (fair) value into the relevant cost.
Keywords: fair value, market value, relevant cost, modified value
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