International Financial Reporting Standard 13
The International Financial Reporting Standard 13 - measurement of fair value ( IFRS 13 ) is an international accounting standard ( IFRS ) of the International Accounting Standards Board (IASB) to be applied in conjunction with IFRS, the review or disclosures about fair value ( fair value ) prescribe or permit.
development
In September 2005, a project on the measurement of fair value was included in the work program of the IASB and a discussion paper was issued on November 30, 2006. Some draft versions in 2010 will be followed by the publication of IFRS 13 on May 12, 2011. IFRS 13 is to be applied to reporting periods beginning on or after January 1, 2013. An entity can apply IFRS 13 to an earlier accounting period, but must then disclose this fact. It must be applied prospectively at the beginning of the financial year in which IFRS is applied for the first time. It is not necessary to provide comparative information for periods prior to first-time application.
Content
IFRS 13 defines the fair value, represents the measurement of the fair value and explains the disclosure requirements.
IFRS 13 defines fair value as the price that would be received for the sale of an asset or paid for the transfer of a liability in a regular transaction between market participants on the measurement date. The valuation assumes that the transaction takes place in the primary market, i.e. the market with the largest volume and the largest number of market activities for the asset or liability. If this is not available, the most advantageous market must be used for the measurement. This is understood to mean a market in which, taking into account the transaction and transport costs, the selling price for an asset would maximize or the transfer amount for a liability would be minimized.
The valuation should primarily be based on the observable market prices for identical assets and liabilities. If these are not available, a three-level evaluation hierarchy must be used:
- Level 1 are price quotes on active markets for identical assets or liabilities to which the company has access on the measurement date. A market price quotation in an active market is the most reliable evidence of the fair value and is used without adjustments in the measurement of the fair value wherever possible, with limited exceptions.
- Level 2 are market prices other than those specified in Level 1 that can be observed either directly or indirectly for the asset or liability.
- Level 3 are unobservable inputs for the asset or liability. A company develops unobservable input factors using the best possible information available in this circumstance, which may contain its own data. All information about the assumptions made by market participants that is reasonably available must be taken into account.
Scope of application
Valuation and disclosure do not apply to IAS 17 (Leases) and IFRS 2 (Accounting for share-based payments) . Likewise, the standard does not apply to valuation approaches that only show similarities to the fair value, such as the residual value in IAS 2 (inventories) or the value in use in IAS 36 (impairment of fixed assets) .
The disclosure requirements of IFRS 13 do not apply to plan assets that were determined at fair value, cf. IAS 19 (Employee Benefits) and IAS 26 (Accounting and Reporting of Pension Plans) . They also do not apply to assets for which the recoverable amount corresponds to the fair value minus selling costs, IAS 36 (Impairment of Fixed Assets).
Web links
- IFRS 13: Fair Value Measurement (PDF; 26 kB)
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