Wiley IFRS 2014: Interpretation and Application of International Financial Reporting Standards

Chapter 25FAIR VALUE

1. INTRODUCTION
   1. The Debate over the Use of Fair Value Measurements
2. SCOPE
3. DEFINITIONS OF TERMS
4. FAIR VALUE MEASUREMENT PRINCIPLES AND METHODOLOGIES
   1. 1. Item identification and unit of account
      2. The principal or most advantageous market
      3. Market participants
      4. Selection of the valuation premise for asset measurements
      5. Risk assumptions when valuing a liability
      6. Restriction preventing the transfer of a liability or an entity's own equity instrument
      7. Financial liability with a demand feature
      8. Fair value for net exposures
      9. Inputs
      10. Valuation techniques
   2. Measurement Considerations
5. FAIR VALUE DISCLOSURE
6. EDUCATION MATERIAL
7. FUTURE DEVELOPMENTS
8. US GAAP COMPARISON

INTRODUCTION

The Debate over the Use of Fair Value Measurements

Financial statement preparers, users, auditors, standard setters, and regulators have long engaged in a debate regarding the relevance, transparency, and decision-usefulness of financial statements prepared under IFRS, which is one among the various families of comprehensive financial reporting standards that rely on what has been called the “mixed attribute” model for measuring assets and liabilities. That is, existing IFRS imposes a range of measurement requirements, including both historical (i.e., transaction-based) cost and a variety of approximations to current economic values, for the initial and subsequent reporting of the assets and liabilities that define the reporting entity's financial position and, indirectly, for the periodic determination of ...