IASB publishes Request for Information on the post-implementation review of IFRS 13
May 25, 2017
On May 25, 2017, the International Accounting Standards Board (IASB) issued a Request for Information (RFI) seeking comments from stakeholders to identify whether IFRS 13 "Fair Value Measurement" provides information that is useful to users of financial statements; whether there are areas of IFRS 13 that are difficult to implement and may prevent the consistent implementation of the standard; and whether unexpected costs have arisen in connection with applying or enforcing the standard.
So far, four broad areas have been identified where IFRS 13 might benefit from improvements. These four areas are the backbone of the RFI:
- Disclosures about fair value measurements. Some of the disclosure requirements for Level 3 fair value measurements are perceived as onerous while at the same time their usefulness is questioned.
- Prioritising Level 1 inputs or the unit of account. IFRS 13 is perceived as not clear on whether entities should prioritise Level 1 inputs or the unit of account when determining the fair value of investments in joint ventures and associates.
- Application of the concept of the highest and best use. Concerns in this area regard the implications of applying the concept of highest and best use in the measurement of groups of operating assets.
- Application of judgement in specific areas. Challenges around this have been mentioned to the IASB and the question is whether further support could be helpful.
Also, the RFI asks respondents whether the IASB should strive to maintain convergence with US GAAP Topic 820 Fair Value Measurement in any changes that might be the result of the PIR.
Comment deadline is September 22, 2017.
Review the press release and request for information on the IASB's website.
