Fair value measurement and disclosure

The following are some examples of assets and liabilities that fall within the scope of IFRS 13 for the purpose of measurement and/or disclosure.

IFRS===Financial reporting itemMeasurementDisclosure
[IAS 39]Financial instruments available-for-sale or held for trading (recurring fair value measurements) 

 

[IAS 39 /

IFRS 7]

Financial instruments held-to-maturity subsequent to initial recognition1 at amortised costs (so not part of IFRS 13.
[IFRS 1]Fair value as deemed cost by a first-time adopter of IFRS (e.g. for property, plant and equipment) in the year of adoption of IFRS 

 

[IFRS 3]Fair value used to initially measure non-financial assets and non-financial liabilities in a business combination 

 

[IFRS 13:7(c)]Measurement of the fair value less costs of disposal of cash-generating units for impairment testing 

 

[IAS 16]Property, plant and equipment measured using the revaluation model
[IAS 40]Investment properties measured using the fair value model
[IAS 41]Biological assets measured at fair value
[IFRS 5]Assets held for disposal, measured at fair value less costs to sell

IAS 32, IAS 36, IFRS 1, IFRS 9, IFRS 13 Definition:  Fair value measurement and disclosure

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

IFRS 16 Definition: Fair value measurement and disclosure

For the purpose of applying the lessor accounting requirements in IFRS 16 Leases, the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction.

IFRS 2 Definition: Fair value measurement and disclosure

The amount for which an asset could be exchanged, a liability settled, or an equity instrument granted could be exchanged, between knowledgeable, willing parties in an arm’s length transaction.

IFRS 13 Definition: Fair value measurement and disclosure

Fair value less costs of disposal: Costs of disposal, other than those that have been recognised as liabilities, are deducted in measuring fair value less costs of disposal. Examples of such costs are legal costs, stamp duty and similar transaction taxes, costs of removing the asset, and direct incremental costs to bring an asset into condition for its sale. However, termination benefits (as defined in IAS 19) and costs associated with reducing or reorganising a business following the disposal of an asset are not direct incremental costs to dispose of the asset.

Fair value measurement and disclosure

 

 

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