Problems of determining the fair value of assets (ifrs 13) in conditions of closed markets and forced relocation of property

The article analyses the problems of applying IFRS 13 “Fair Value Measurement” in the context of closed markets and forced relocation of property in the Russian Federation after 2022.

The purpose of the study is to identify methodological limitations and adaptations of the fair value concept in the context of systemic market distortions caused by sanctions pressure, regulatory measures, and limited liquidity. The work used regulatory documents on IFRS, analytical reports from regulatory authorities, case studies from the Russian market as well as statistical and legal data that reflect the current economic situation.

It also uses the following methodological approaches: a critical analysis of IFRS provisions; a regulatory review of Russian legislation; and a comparative analysis between initial fair values.

The results of the study show that observed transactions in current conditions often do not meet the definition of “conventional” transactions, which makes it impossible to use them for determining fair value. This necessitates a transition to level 3 data, increasing uncertainty in assessments and requiring a high level of professional judgment. Measures such as mandatory discounts, exit taxes, temporary asset management, and currency restrictions significantly influence valuation methods. The study revealed that measures such as mandate discounts, exit taxes, temporary asset management and currency restrictions have a significant impact on assessment methods. The authors proposed specific adaptation methods for traditional approaches, which include adjusting discounted cash flow models and accounting for premiums for political and country risks.

In conclusion, the authors find it necessary to revise the traditional understanding of fair value in the context of an unstable and regulated market environment.

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