Importance The article discusses issues of using the fair value to measure accounting items in operations of entities which prepare their financial statements under IFRS. Objectives I outline recommendations for addressing the issues of using the fair value to measure accounting items. Methods The research is based on a critical analysis of the way practical issues of fair value are regulated today, synthesis, comparison, observation and method of analogies. Results I identified that IFRS 13 – Fair Value Measurement insufficiently describes some applicable concepts, fails to provide exhaustive rules, which would provide for an accurate assessment of fair value of accounting items. I prove the controversies of fair value regulation in IFRS 13 and other international standards. The article presents my own approaches to addressing challenging issues of using the fair value in corporate practices. Conclusions and Relevance Currently, IFRS 13 and some other international standards are not convergent in terms of unified approaches to fair value. Some principles of IFRS 13 are not well specified, being difficult to use. Principles of IFRS 13 on the use of fair value measurements fail to unveil the substance of the methods. This may cause the highly biased approach to measuring the fair value of accounting items in practice and comparing financial of different entities. Considering the insufficient principles of IFRS 13, the identical national standard should be articulated so that approaches to the practical use of fair value would be better regulated. The findings are of applied and theoretical nature and can be used in financial accounting.
Keywords: fair value, market, market actor
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