Highest and best use

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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' by market participants of the asset being valued takes into account the most advantageous use of the asset that is:

  • Physically possible
  • Legally permissible and
  • Financially feasible.


See also