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ИД «Финансы и кредит»






International Accounting

A comparative analysis of the use of fair value and alternative valuation methods in IFRS

Vol. 24, Iss. 9, SEPTEMBER 2021

Received: 28 June 2021

Received in revised form: 9 August 2021

Accepted: 30 August 2021

Available online: 15 September 2021


JEL Classification: M41, M42, M48

Pages: 986–1000


Viktor G. GET’MAN Financial University under Government of Russian Federation, Moscow, Russian Federation

ORCID id: not available

Vladislav S. KARTASHOV Financial University under Government of Russian Federation, Moscow, Russian Federation


Subject. This article analyzes the various types of value used in IFRS to assess assets and liabilities.
Objectives. The article aims to conduct a comparative analysis of the types of value used in IFRS when assessing assets and liabilities, and identify the features of the use of fair value as a type of value, considering the use of certain levels of fair value and restrictions on their use.
Methods. For the study, we used the systems analysis, comparative study method, information structuring, data grouping, deduction, and other methods of scientific research.
Results. The article summarizes the advantages and disadvantages of each of the valuation methods described in the Conceptual Framework for Financial Reporting – IFRS. It systematizes the standards that use certain types of value, and analyzes the features of the use of fair value. The article also identifies factors that affect the ability to measure a higher level of fair value.
Conclusions. Fair value is one of the most used valuation methods in international accounting practices. However, the use of fair value in estimating the value of reporting items is limited due to the complexity and high cost of its qualitative valuation. This makes companies use alternative valuation methods.

Keywords: fair value, IFRS, advantages, disadvantages


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ISSN 2311-9381 (Online)
ISSN 2073-5081 (Print)

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Vol. 24, Iss. 9
September 2021