Quarterly Valuation And Continuous Monitoring In Egypt

Market movements occur irrespective of the calendar used for the financial reporting cycle. Interest rates may shift in between reporting dates, exchange rates can shift within a short while, market multiples can shift rapidly, and news about the entity itself might influence the expectations of the market participants until the next reporting date. On the other hand, the financial reporting framework requires that there are distinct dates of measurement to arrive at the carrying amount and fair value of the relevant asset or liability. It thus poses an important question to firms, investors, regulators, accountants, and valuers: Is quarterly valuation enough considering that the market keeps moving?