Chartered Accountants Program Financial Accounting & Reporting

Unit 6 Quick reference guide 6.2 Page 6-1

QRG
Quick reference guide 6.2
Fair value measurement of a liability or an
entitys own equity instruments
This diagram shows the process of performing a fair value measurement under IFRS 13 Fair
Value Measurement of a liability or an entitys own equity instruments.
YES NO
NO
NO
Quoted price for transfer
of an identical or
similar liability/own
equity instrument?
Value from the perspective
of market participant
that holds the asset
Use an appropriate valuation technique
Value from the perspective
of market participant
that owes liability or
issued equity instrument
Identical instruments
held as an asset by
another party?
Quoted price in an active
market for identical
instrument held as asset?
YES
Use quoted price
YES
Use quoted price
(adjusted for
diferences)
Source: Adapted from KPMG June 2011, First impressions: Fair value measurement, p. 8, accessed
15 July 2013, www.kpmg.com, search for fair value measurement.