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IFRS Essentials by Norbert Lüdenbach, Dieter Christian

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IFRS 13 FAIR VALUE MEASUREMENT

1 INTRODUCTION

IFRS 13 defines fair value, sets out a framework for measuring fair value (i.e. explains how to measure fair value for financial reporting), and requires disclosures about fair value measurements (IFRS 13.1 and 13.IN4).

The new standard has to be applied in the financial statements as at Dec 31, 2013 (if the entity's reporting periods start on Jan 01 and end on Dec 31). Earlier application is permitted by the IASB (IFRS 13.C1). However, in the European Union, new IFRSs have to be endorsed by the European Union before they can be applied. There has been no endorsement with regard to IFRS 13 as yet.

Explaining fair value measurement in detail cannot be effected in only one chapter of a book. Instead, this would require writing a separate book. Consequently, in this chapter only the fundamentals of measuring fair value (and not every detail) are discussed.

Since the initial mandatory application of IFRS 13 applies to financial statements as at Dec 31, 2013 (see above), the other chapters of this book do not yet incorporate the consequential amendments of IFRS 13 to other standards.

2 SCOPE

The standard applies when another IFRS permits or requires fair value measurements or disclosures about fair value measurements (including measurements such as fair value less costs to sell, based on fair value, and disclosures about those measurements), except in specified circumstances. It does not require fair value measurements in addition to those ...

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