IFRS 13 Fair Value Measurement defines fair value, sets out in a single IFRS a framework for measuring fair value, and requires disclosures about fair value measurements.
Published May 2011. Effective 1 January 2013.
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*UK qualifying parents and subsidiaries can take advantage of FRS 101 Reduced Disclosure Framework. Find out more on which entities qualify and the criteria to be met.
With limited exceptions, IFRS 13 applies where another IFRS requires or allows fair value measurements or disclosures about fair value measurements. The new standard provides guidance on establishing fair values and introduces consistent disclosure requirements.
Fair value is defined by IFRS 13 as ‘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 13 indicates that when measuring fair value, the following must be considered:
The standard provides a hierarchy of methods (‘the fair value hierarchy’) for arriving at fair value, with Level 1 being the preferable method where available:
IFRS 13 also requires extensive disclosures to help users of the financial statements assess:
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To be applied to annual periods beginning on or after 1 July 2014 (1 February 2015 for EU preparers). Earlier application is permitted.As part of the annual improvements 2010-2012 cycle, IFRS 13 is amended to clarify that issuing IFRS 13 and amending IFRS 9 and IAs 39 did not remove the ability to measure short-term receivables and payables with no stated interest at their invoice amount without discounting if the effect of discounting is immaterial.
To be applied to annual periods beginning on or after 1 July 2014 (1 January 2015 for EU preparers). Earlier application is permitted.
As part of the annual improvements 2011-2013 cycle, IFRS 13 is amended to clarify that the portfolio exception of paragraph 52 applies to all contracts within the scope of IAS 39 and IFRS 9 regardless of whether they meet the definitions of financial assets or liabilities as defined in IAS 32.
Effective for annual periods beginning on or after 1 January 2018. Earlier application is permitted.
IFRS 13 is amended to refer to IFRS 9 as well as IAS 39.
To be applied to periods beginning on or after 1 January 2019. Earlier adoption is permitted.
IFRS 13 is amended to refer to IFRS 16 rather than IAS 17.
The IASB has initiated a post-implementation review of IFRS 13 and a Request for Information was issued in May 2017. This focuses on:
UK qualifying parents and subsidiaries can take advantage of FRS 101 Reduced Disclosure Framework. Find out more on which entities qualify and the criteria to be met.
There are no amendments to IFRS 13 in order to comply with the Companies Act or related Regulations.
FRS 101 paragraph 8(e) states that a qualifying entity is exempt from all of the disclosure requirements of IFRS 13 with the following limitations.
IFRS 13 paragraphs for which exemption is available: 91-99.
This page was last updated 14 December 2017