IFRS framework allows us how to measure the fair value of both financial and non-financial assets and

liabilities. Fair value measurements is required in many cases throughout the IFRS to measure assets,
liabilities or own equity instrument. Over the time, the requirement on fair value measurement have
developed in different standard at different points in time which led to inconsistencies between the
standard but also in practice. This situation decreased the quality and comparability of the financial
statement. Importance is a key issue. The Framework says that historical cost may not give relevant
data about assets held for an extensive stretch of time, and are unquestionably far-fetched to give
significant data about subsidiaries. In the two cases, almost certainly, some variety of current value will
be utilized to give progressively prescient data to clients. The Framework proposes that fair value may
not be significant if items are held exclusively for use or to gather contractual cash flows. Nearby this,
the Framework explicitly makes reference to things utilized in a blend to create cash flows by delivering
good and services to customers. As these things are probably not going to have the option to be sold
independently without penalizing the activities, a cost-based measure is probably going to give
progressively relevant information, as the cost is compared to the margin made on sales.