New financial reporting standards reveal transparency in asset valuation methods.
The article discusses how International Financial Reporting Standards (IFRS) 13, Fair Value Measurement, guides companies on disclosing information about how they determine the fair value of assets and liabilities. It emphasizes that all investments in equity instruments must be measured at fair value, even if they are not publicly traded. The three main methods for valuing these instruments are the market approach, income approach, and adjusted net asset method.