Highest and best use: Difference between revisions

Revision as of 14:14, 1 August 2015

Financial reporting - fair value.

IFRS 13 Fair Value Measurement defines 'highest and best use' in relation to establishing fair values for non-financial assets and liabilities.

In this context the measurement of the 'highest and best use' of the asset being valued takes into account the use of the asset that is:

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-The use of a non-financial asset by market participants that would maximise the value of the asset or the group of assets and liabilities (e.g. a business) within which the asset would be used.
+''Financial reporting - fair value''.
+IFRS 13 Fair Value Measurement defines 'highest and best use' in relation to establishing fair values for non-financial assets and liabilities.
+In this context the measurement of the 'highest and best use' of the asset being valued takes into account the use of the asset that is:
+*Physically possible
+*Legally permissible and
+*Financially feasible.
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 *[[IFRS 13]]
 *[[Fair value]]
+*[[Market participant]]