IFRS 13Chapter 5Lesson 1
Non-financial assets: highest and best use and valuation premise
Step 1 of 6Learning objectives
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For a non-financial asset, the measurement uses the highest and best use from the market participants' point of view (physically possible, legally permissible, financially feasible), then the premise of combined or stand-alone use.
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Learning objectives
- Analyse the highest and best use of a non-financial asset against the three criteria, from the market participants' point of view.
- Compare an asset's value under different uses, net of conversion costs, and retain the highest.
- Determine the valuation premise (combined or stand-alone use) and the resulting value.