IFRS 13 Fair Value Measurement may impact on Statement of Financial Position, Statement of Other Comprehensive Income, and Notes to the Financial Statements. The adoption of this standard would apply only when an existing IFRS already requires an asset or liability to be measured at fair value.
To determine the items of assets and liabilities whose values are measured at fair value, the enterprise needs to review related standards. The below table lists the connection between the standards related to the IFRS 13:
|
IFRS |
Request |
Allow |
Description |
|
IFRS 3 - Business Combinations |
x |
|
All assets acquired and liabilities assumed in a business combination are measured at acquisition-date fair value. |
|
IFRS 5 - Non-current Assets Held for Sale and Discontinued Operations |
x |
|
A non-current asset or disposal group to be classified as held for sale, are recognized at the lower of carrying amount and fair value less costs to sell. |
|
IAS 16 - Property, Plant and Equipment |
|
x |
An entity, after initial recognition, shall choose either cost model or revaluation model to measure. Under the revaluation model, the asset is carried at a revalued amount, being its fair value at the date of revaluation less subsequent depreciation and impairment, provided that fair value can be measured reliably. |
|
IAS 19 - Employee Benefits |
x |
|
Retirement benefits are predetermined: The measurement of the net worth of a defined asset or liability requires the application of insurance pricing methods, distribution of benefits over time in which the worker works, and using actuarial assumptions. The fair value of an asset is subtracted from the present value of the identified benefit obligation to determine the deficit or surplus. |
|
IAS 28 - Investments in Associates and Joint Ventures |
|
x |
When an investment in an associate or joint venture is held by, or is held indirectly through, an entity that is a venture capital organization, a mutual fund, unit trust, or similar entity including an investment-linked insurance funds, investors may determine the investment at fair value through statement of profit or loss under IFRS 9. |
|
IAS 36 - Impairment of Assets |
x |
|
IAS 36 seeks to ensure that an entity's assets are not carried at more than their recoverable amount. Recoverable amount is the higher of the asset's fair value less costs of disposal and its value in use. |
|
IAS 38 - Intangible Assets |
|
x |
An entity, after initial recognition, shall choose either cost model or revaluation model to measure. Under the revaluation model, the asset is carried at a revalued amount, being its fair value at the date of revaluation less subsequent depreciation and impairment, provided that fair value can be measured reliably. |
|
IFRS 9 - Financial Instruments |
x |
|
All financial instruments are initially measured at fair value plus or minus, in the case of a financial asset or financial liability not at fair value through profit or loss, transaction costs. |
|
IAS 40 - Investment property |
|
x |
An entity, after initial recognition, shall choose either cost model or revaluation model to measure. |
|
IAS 41 - Agriculture |
x |
|
Biological assets should be measured at initial recognition, and at the end of each reporting period, at fair value less estimated costs to sell. Agricultural produce harvested from an entity's biological assets shall be measured at its fair value less costs to sell at the point of harvest. |
IFRS 13 - Fair Value Measurement defines fair value, establishes a framework for measuring fair value, and requires significant disclosures relating to fair value measurement. In which, focus on:
- Establish a single set of measurement requirements, and hence reduce complexity and improve consistency in the application of the principles of fair value measurement.
- Accurately define fair value and provide transparency by disclosure and fair value disclosure requirements.