Understanding the concepts of valuation is
A)More important now as IFRS and GAAP move more towards a fair market value framework.
B)Less important now as IFRS and GAAP move more towards a fair market value framework.
C)More important as determining valuations becomes easier.
D)Less important as determining valuations becomes easier.

Question

Quizplus · Accepted Answer

Valuation is becoming more important now as IFRS and GAAP move more towards a fair market value framework. The fair value method requires entities to measure and report their assets and liabilities at fair value, which involves determining the value of an asset or liability by reference to the price that would be received to sell it in an orderly transaction between market participants at the measurement date. Valuation is a complex process that requires expertise in finance, accounting, and economic theory. As such, understanding valuation concepts is critical for financial professionals who must apply these principles to their work.

Understanding the Concepts of Valuation Is