This appendix is an integral part of the IFRS. It describes the application of paragraphs 1-99 and has the same authority as the other parts of the IFRS.
B1 The judgements applied in different valuation situations may be different. This appendix describes the judgements that might apply when an entity measures fair value in different valuation situations.
The fair value measurement approach
B2 The objective of a fair value measurement is to estimate the price at which an orderly transaction to sell the asset or to transfer the liability would take place between market participants at the measurement date under current market conditions. A fair value measurement requires an entity to determine all the following:
(a) the particular asset or liability that is the subject of the measurement (consistently with its unit of account).
(b) for a non-financial asset, the valuation premise that is appropriate for the measurement (consistently with its highest and best use).
(c) the principal (or
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