IFRS 13 Fair Value Measurement
- Published in the Official Journal
- Didier Andries
In May 2009, the IASB published an Exposure Draft Fair Value Measurement (the ED). EFRAG issued its comment letter to the IASB on the ED in October 2009. In its comment letter on the ED, EFRAG welcomed the IASB's decision to clarify the term "fair value" and to provide guidance on how fair value can be estimated. EFRAG was broadly supportive of the proposed fair value measurement framework in relation to financial assets and liabilities; however, did not support it in relation to non-financial items.
In June 2010, the IASB re-exposed a limited number of proposals in relation to disclosures about fair value measurement in an Exposure Draft Measurement Uncertainty Analysis Disclosure for Fair Value Measurements (the ED).
In May 2011, the IASB published IFRS 13 Fair Value Measurement. IFRS 13 is a result of a joint project conducted by the IASB together with the FASB. IFRS 13 sets out a single IFRS framework for measuring fair value and provides comprehensive guidance on how to measure the fair value of both financial and non-financial assets and liabilities. IFRS 13 applies when another IFRS requires or permits fair value measurement or disclosures about fair value measurements, thus it does not set out requirements on "when to" apply fair value measurement. IFRS 13 becomes effective on 1 January 2013.
On 20 January 2012, EFRAG issued its Endorsement Advice Letter and Effects Study Report relating to the endorsement of IFRS 13 for use in the European Union and European Economic Area. EFRAG supports IFRS 13 and has concluded that it meets the requirements of endorsement. EFRAG has also concluded that the benefits to be derived from implementing IFRS 13 are likely to outweigh the costs involved.