What is fair value according to IFRS?

What is fair value according to IFRS?

IFRS 13 defines fair value 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 (an exit price).

What is the purpose of IFRS 13?

IFRS 13 is a new standard that defines fair value, sets out in a single IFRS a framework for measuring fair value and requires disclosures about fair value measurements. IFRS 13 does not determine when an asset, a liability or an entity’s own equity instrument is measured at fair value.

Does IFRS 13 apply to IFRS 16?

IFRS 13 does not however apply to: • transactions within the scope of IFRS 2 or IFRS 16, or • measurements that have some similarity to fair value but are not fair value (eg net realisable value in IAS 2 ‘Inventories’ and value in use in IAS 36 ‘Impairment of Assets’).

What is the difference between market value and fair value?

In investing, fair value is a reference to the asset’s price, as determined by a willing seller and buyer, and often established in the marketplace. Fair value is a broad measure of an asset’s worth and is not the same as market value, which refers to the price of an asset in the marketplace.

What is the scope of IFRS?

Scope of IFRSs IFRSs apply to the general purpose financial statements and other financial reporting by profit-oriented entities – those engaged in commercial, industrial, financial, and similar activities, regardless of their legal form.

Why is IFRS important?

IFRS Standards bring transparency by enhancing the international comparability and quality of financial information, enabling investors and other market participants to make informed economic decisions. Our Standards provide information that is needed to hold management to account.

What does IFRS 13 mean for fair value measurement?

IFRS 13 applies to IFRSs that require or permit fair value measurements or disclosures and provides a single IFRS framework for measuring fair value and requires disclosures about fair value measurement.

What is the purpose of IFRS 13 Bc7?

BC7 IFRS 13 is the result of that project. IFRS 13 is a single source of fair value measurement guidance that clarifies the definition of fair value, provides a clear framework for meas uring fair value and enhances the disclosures about fair value measurements.

What does the number 13 mean in numerology?

The number 13 is considered as a very powerful number, it is a karmic number which means if the power of this number is used for any selfish purposes then this number can bring a lot of problems to the life of a person who misuses it. It is a very powerful number but not everyone can adapt to the power of this number.

Are there any disclosure requirements for IFRS 13?

For example, IFRS 13 does not specify the measurement and disclosure requirements for share-based payment transactions, leases or impairment of assets. Nor does it establish disclosure requirements for fair values related to employee benefits and retirement plans.