Financial Reporting and Fair Value

According to International Financial Reporting Standards fair value has been applied as a compulsory or alternative basis for the valuation of most financial statement's elements. The article scrutinizes solutions contained in IAS/IFRS by showing the main areas of application of the fair value method. Based on specific selected IAS/IFRS solutions, a review was made of allowable methods and techniques for determining fair value and a hierarchy of applications was suggested that would ensure correctness and reliability of valuation of the components of financial statements