Fair Value Measurement

In May 2011 the International Accounting Standards Board issued IFRS 13 Fair Value Measurement. IFRS 13 defines fair value and replaces the requirement contained in individual Standards.

Other Standards have made minor consequential amendments to IFRS 13. They include IAS 19 Employee Benefits (issued June 2011), Annual Improvements to IFRSs 2011–2013 Cycle (issued December 2013), IFRS 9 Financial Instruments (issued July 2014) and IFRS 16 Leases (issued January 2016).

CONTENTS

from paragraph

INTERNATIONAL FINANCIAL REPORTING STANDARD 13

FAIR VALUE MEASUREMENT

OBJECTIVE 1

SCOPE 5

MEASUREMENT 9

Definition of fair value 9

The asset or liability 11

The transaction 15

Market participants 22

The price 24

Application to non-financial assets 27

Application to liabilities and an entity’s own equity instruments 34

Application to financial assets and financial liabilities with offsetting positions in market risks or counterparty credit risk 48

Fair value at initial recognition 57

Valuation techniques 61

Inputs to valuation techniques 67

Fair value hierarchy 72

DISCLOSURE 91

APPENDICES

A Defined terms

B Application guidance

C Effective date and transition

D Amendments to other IFRSs

APPROVAL BY THE BOARD OF IFRS 13 ISSUED IN MAY 2011

FOR THE ACCOMPANYING GUIDANCE LISTED BELOW, SEE PART B OF THIS EDITION

• ILLUSTRATIVE EXAMPLES
• APPENDIX
• Amendments to the guidance on other IFRSs

FOR THE BASIS FOR CONCLUSIONS, SEE PART C OF THIS EDITION

• BASIS FOR CONCLUSIONS
• APPENDIX TO THE BASIS FOR CONCLUSIONS
• Amendments to the Basis for Conclusions on other IFRSs

International Financial Reporting Standard 13 Fair Value Measurement (IFRS 13) is set out in paragraphs 1–99 and Appendices A–D. All the paragraphs have equal authority. Paragraphs in bold type state the main principles. Terms defined in Appendix A are in italics the first time they appear in the IFRS. Definitions of other terms are given in the Glossary for International Financial Reporting Standards. IFRS 13 should be read in the context of its objective and the Basis for Conclusions, the Preface to IFRS Standards and the Conceptual Framework for Financial Reporting. IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors provides a basis for selecting and applying accounting policies in the absence of explicit guidance.