Recently the guidance on fair value in full IFRSs has been consolidated and comprehensively updated by IFRS 13 Some Fair Value Measurement. of the main changes are: an emphasis that fair value is a market-based measurement (not an • entity-specific measurement); an amendment to the definition of fair value to focus on an exit • price (fair value is defined in IFRS 13 as price that would be “the received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement and date”); more specific guidance on determining fair value, including • assessing the highest and best use of non-financial assets and identifying the principal market. The guidance on fair value in Section 11 is based on the guidance on fair value in IAS 39. The IAS 39 guidance on fair value has been replaced by IFRS 13. In straightforward cases, applying the IFRS 13 guidance on fair value would have no impact on the way fair value measurements are made under the However, if the new guidance was to be IFRS for SMEs. incorporated into the SMEs would need to re-evaluate IFRS for SMEs,
Recently the guidance on fair value in full IFRSs has been consolidated and comprehensively updated by IFRS 13 Fair Value Measurement. Some of the main changes are: • an emphasis that fair value is a market-based measurement (not an entity-specific measurement); • an amendment to the definition of fair value to focus on an exit price (fair value is defined in IFRS 13 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”); and • more specific guidance on determining fair value, including assessing the highest and best use of non-financial assets and identifying the principal market. The guidance on fair value in Section 11 is based on the guidance on fair value in IAS 39. The IAS 39 guidance on fair value has been replaced by IFRS 13. In straightforward cases, applying the IFRS 13 guidance on fair value would have no impact on the way fair value measurements are made under the IFRS for SMEs. However, if the new guidance was to be incorporated into the IFRS for SMEs, SMEs would need to re-evaluate
8_494_MarkOmonaICPAU_0_ComprehensiveReviewoftheIFRSforSMEsICPAUComments.docx