BCZ14 IAS 32 Financial Instruments: Disclosure and Presentation [In 2005 the IASB amended IAS 32 as Financial Instruments: Presentation.] and a number of other International Accounting Standards define fair value [IFRS 13, issued in May 2011, defines fair value as an exit price.] as:

‘... the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction...’

BCZ15 International Accounting Standards include the following requirements or guidance for measuring fair value: [IFRS 13, issued in May 2011, defines fair value and contains the requirements for measuring fair value. As a consequence the relevant requirements in IAS 16 and IAS 39 have been deleted from those Standards.]

(a) for the purpose of revaluation of an item of property, plant or equipment to its fair value, IAS 16 Property, Plant and Equipment indicates that fair value is usually an asset’s market value, normally determined by appraisal undertaken by professionally qualified valuers and, if no market exists, fair value is based on the asset’s depreciated replacement cost.