THE Institute of Chartered Accountants of the Eastern Caribbean ( ICAEC) – St. Lucia branch held a seminar on Practical Application of International Financial Reporting Standards (IFRS) 13, last Friday at the Bay Gardens Beach Resort.
The presenter was Mr. Andre Walcott of AnottConsultancy , a Certified Public Accountant and Chartered Business Valuator with significant hands on experience in valuation services.
IFRS 13, addresses Fair Value measurement and disclosures and sets out a single framework for measuring fair value. The standard is to be applied in calculating the fair value of financial instruments, e.g. debt instruments, investment securities, bonds, long term loans as well as the valuation of non-financial assets such as land.
While valuations now form a critical aspect of financial reporting and can impact on whether a business records a profit or a loss, as certain amounts in the financial statements are to be recognised at their fair values, it has been held that valuation is not an exact science. It is therefore critical that certain principles are followed consistently by all who are making these measurements, and that these principles and the assumptions required in their application, are adequately disclosed to the users of the financial statements. Those who are involved with financial reporting or monitoring must therefore be knowledgeable about the standard, which continues to increase in relevance in these turbulent economic times.