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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*Not EU endorsed as at 7 June 2017. Read more on EU Endorsement.
The IASB has initiated a post-implementation review of IFRS 13 and a Request for Information was issued in May 2017.
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 7 June 2017