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IFRS 13 summary and timeline

A summary of IFRS 13 Fair Value Measurement, including information on current proposals and a timeline of past amendments, announcements, exposure drafts and consultations.


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.

Looking for the standard?

Practical guidance on this standard is now on our main IFRS 13 Fair Value Measurement page, with links to eIFRS, the full text standard, eBooks and other resources.

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 asset or liability being measured, including its condition, location and any restrictions on sale
  • The principal (or most advantageous) market in which an orderly transaction would take place for the asset or liability
  • For a non-financial asset, the highest and best use of the asset and whether the asset is used in combination with other assets or on a stand-alone basis
  • The assumptions that market participants would use when pricing the asset or liability.

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:

  • Level 1 unadjusted quoted prices for identical assets and liabilities in active markets.
  • Level 2 other observable inputs for the asset or liability such as quoted prices in active markets for similar assets or liabilities or quoted prices for identical assets or liabilities in markets which are not active.
  • Level 3 unobservable inputs developed by an entity using the best information available where there is little or no market activity for the asset or liability at the measurement date.

IFRS 13 also requires extensive disclosures to help users of the financial statements assess:

  • valuation techniques and inputs used to measure fair values
  • for fair value measurements which are regularly updated (such as those in relation to investment properties) and which use significant level 3 inputs, the effect of the measurements on profit or loss or other comprehensive income for the period.

Current proposals

ED/2021/3 Disclosure Requirements in IFRS Standards – A Pilot Approach was issued in March 2021. It includes draft guidance to be used by the Board when developing new disclosure requirements. IFRS 13 is one of two Standards being used to test the guidance and as such the ED also includes draft disclosure requirements to replace those currently included in IFRS 13.


Date Update
25 March 2021 IASB issues ED/2021/3 Disclosure Requirements in IFRS Standards – A Pilot Approach – Proposed Amendments to IFRS 13 and IAS 19
12 December 2013 IASB issues 2010–2012 and 2011–2013 Annual Improvements Cycle amendments to IFRS 13
Annual Improvements 2010 – 2012 amends the IFRS 13 Basis for Conclusions only and has no effective date; Annual Improvements 2011 – 2013 amendments to IFRS 13 are effective for annual periods beginning on or after 1 July 2014.
12 May 2011 IASB issues IFRS 13
Effective for annual periods beginning on or after 1 January 2013.