IFRS Framework and Fair Value: From Historical Cost to Market Measurement

IFRS fair value explains why modern reporting moved past static cost figures and towards market-based measurement. This video shows why fair value fits the core logic of IFRS, rather than sitting as a narrow exception.

SOURCE:
Faccia, A. (2026) IFRS Framework and Fair Value: From Historical Cost to Market Measurement. Kindle eBook. Available at: https://www.amazon.com/dp/B0G2J6QS3X

IFRS replaced a record-keeping mindset with a reporting model built for investors and capital markets. The script traces the shift from IAS to IFRS, then shows how historical cost served creditor protection, prudence, and nominal capital maintenance, yet struggled under inflation and financial innovation. It explains why decision usefulness, relevance, and faithful representation took priority, and why verifiability moved into a supporting role. The video also examines the revised meaning of prudence, the logic of Chapter 6, and the use of mixed measurement in practice. The result is a clear account of why fair value became central for financial and market-sensitive items, while historical cost still remains useful for many operating assets.

• From IAS to IFRS, a Change in Purpose
• Why Historical Cost Dominated for Decades
• Inflation, Derivatives, and the Failure of Static Logic
• Relevance, Prudence, and the Rise of Fair Value
• Why IFRS Uses a Mixed Measurement Model

#IFRS #FairValueAccounting #FinancialReporting

Видео IFRS Framework and Fair Value: From Historical Cost to Market Measurement канала AI Finance Studio