Summary of IFRS 13
This summary of the IFRS 13 guidelines was generated using Microsoft Copilot AI.
IFRS 13 — Fair Value Measurement defines fair value, sets out a framework for measuring fair value, and requires disclosures about fair value measurements. Here are the key points:
Definition of Fair Value:
Fair value is defined 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).
When measuring fair value, entities use assumptions that market participants would use under current market conditions, including assumptions about risk. The entity’s intention to hold an asset or settle a liability is not relevant when measuring fair value.
Scope:
IFRS 13 applies when other Standards require or permit fair value measurements or disclosures about fair value measurements (including measurements based on fair value less costs to sell).
However, it 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.
Standard History:
In May 2011, the International Accounting Standards Board issued IFRS 13 Fair Value Measurement, which defines fair value and replaces the requirement contained in individual Standards.
Minor consequential amendments to IFRS 13 have been made by other Standards, including IAS 19 Employee Benefits, Annual Improvements to IFRSs 2011–2013 Cycle, IFRS 9 Financial Instruments, and IFRS 16 Leases.
For more detailed information, you can refer to the IFRS 13 page1.
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