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Fair Value Measures
Fair Value Measures
Definition
Assets
Cost
us
Financial
Etc
us
Defined
Benefit
FV pl
an
PUC p assets le
ss
lan ob
ligatio
& arb
n
itrary
rules
FV pl
a
n ass
PUC
plan o ets less
arbitr bligation &
ary ru
le s
IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org
Biological
assets
lue
Fair va to
s ts
less co
sell
lue
Fair va to
sts
less co
sell
al
v
ir
Fa
ue
VM
Va
r io
Va
r io
or
F
Assets
Inv
Property
st
Co
Inventory
M
FV
or
Intangible
CM
PP&E
Ni l
Am
Cost
Ni l
st
Co
Lo
w
er
so of
m C
e or
FV N
M RV
RM
CM or
ASSET TYPE
MEASUREMENT AT
INITIAL
RECOGNITION
MODEL BASED
ON FAIR VALUE
IFRS 9 Financial
Instruments
Fair value
IAS 16 Property,
Plant and
Equipment
Purchase costs +
construction costs + costs to
bring to the location and
condition necessary to be
capable of operating in the
manner intended by
management.
Accounting policy
choice: revaluation
model
IAS 38 Intangible
Assets
Purchase costs +
development costs + costs to
bring to the location and
condition necessary to be
capable of operating as
intended by management
Accounting policy
choice: revaluation
model
IAS 40
Investment
Property
Accounting policy
choice: fair value
IAS 41 Agriculture
2010 IFRS Foundation. 30 Cannon Street | London EC4M 6XH | UK. www.iasb.org
BASIS OF
IMPAIRMENT
6
TEST
Compare carrying
amount to recoverable
amount.
Recoverable amount is
greater of value in use
and fair value less
disposal costs (IAS 36)
IAS 41
Agriculture
Measurement
10
11
12
IAS 16
Property, Plant and
Equipment
14
continued
15
16
17
IAS 38
Intangible Assets
Measurement
19
Measurement continued
20
21
IAS 40
Investment Property
Subsequent measurement
23
24
25
IFRS 9
Financial Instruments
Contractual cash
flow characteristics
All other
instruments:
Equities
Derivatives
Some hybrid
contracts
Amortised cost
(one impairment
method)
FVO for
accounting
mismatch
(option)
27
IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org
Fair Value
(No impairment)
Equities:
OCI presentation
available
(alternative)
Measurement
28
29
IFRS 5
Non-current Assets Held for
Sale and Discontinued
Operations
31
IAS 2
Inventories
Measurement exception
33
IFRS 3
Business Combinations
Principles
35
Exceptions
36
Exceptions continued
37
Employee benefits
Accounted for in accordance with IAS 19
Indemnification assets
May not be recognised at FV if it relates to an item
not recognised or measured in accordance with
IFRS 3
IFRS Foundation | 30 Cannon Street | London EC4M 6XH | UK. www.ifrs.org
38
39
Consideration transferred
Measured at fair value of sum of assets transferred and
liabilities assumed
Acquisition-related costs are not included
Contingent consideration included at its fair value at
acquisition date (changes are not included in the
consideration transferred at acquisition-date)
40
4141
IFRS 13
Fair Value Measurement
Introduction
43
44
Its weaknesses
Definition
45
Application guidance
46
47
Non-financial assets
48
49
No
49
Yes
No use of significant
unobservable
(Level 3) inputs =
Level 2
measurement
No
Use of significant
unobservable
(Level 3) inputs =
Level 3
measurement
Disclosure
50
51
52
Questions or comments?
Expressions of individual
views
by members of the IASB and
its staff are encouraged. The
views expressed in this
presentation
are those of the presenter.
Official positions of the IASB
on accounting matters are
determined only after
extensive due process and
deliberation.
53
54