BC213 The boards decided to require an entity to disclose information about when it uses a non‑financial asset in a way that differs from its highest and best use (when that asset is measured at fair value in the statement of financial position or when its fair value is disclosed). The boards concluded that such a disclosure provides useful information for users of financial statements that rely on fair value information when forecasting future cash flows, whether that fair value information is presented in the statement of financial position or is disclosed in the notes. Users told the boards that they would need to know how non‑financial assets are being used and how that use fits with an entity’s strategic and operating plans.

BC214 The boards considered whether to limit the disclosure to some non‑financial assets and not others. The boards concluded that because the measurement and disclosure requirements are principle‑based, those requirements should not need to be amended in the future if the boards should decide to use fair value as the measurement basis for particular assets or liabilities. Therefore, the disclosure is required for any non‑financial asset measured at fair value that an entity uses in a way that differs from its highest and best use.