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Post-implementation review of IFRS 13 Fair Value Measurement [Completed]

Effective date:

Not applicable

Last updated:

December 2018

Reach out to our IFRS 13 Specialist

Kerry Danyluk

Overview

The objective of the post-implementation review (PIR) was to assess the effect of the new requirements of IFRS 13, Fair Value Measurement, on investors, preparers and auditors.

IFRS 13 defines fair value, sets out in a single IFRS® Standard a framework for measuring fair value and requires disclosures about fair value measurements. The fair value measurement project was part of the International Accounting Standards Board’s (IASB) convergence work with the US national standard-setter, the Financial Accounting Standards Board (FASB). Their joint work resulted in IFRS Standards and US generally accepted accounting principles (GAAP) having the same definition and meaning of fair value and the same disclosure requirements about fair value measurements.

The goals of the fair value measurement project were: (i) to reduce complexity and improve consistency in the application of fair value measurement principles by having a single set of requirements for all fair value measurements; (ii) to communicate the measurement objective more clearly by clarifying the definition of fair value; (iii) to improve transparency by enhancing disclosures about fair value measurements; and (iv) to increase the convergence of IFRS Standards and US GAAP.

The IASB completed its review of the findings from the Post-implementation Review of IFRS 13, Fair Value Measurement in March 2018. In December 2018, the IASB published the Project Report and Feedback Statement, in which the IASB concluded that IFRS 13 is working as intended. In particular:

  • the information required by IFRS 13 is useful to users of financial statements;
  • some areas of IFRS 13 present implementation challenges, largely in areas requiring judgement. However, evidence suggests that practice is developing to resolve these challenges; and
  • no unexpected costs have arisen from application of IFRS 13.

The IASB concluded that the project was complete and that no further work on the project was required.

 

Other Developments

December 2018

On December 14, 2018, the IASB published a summary report on its Post-implementation Review (PIR) of the fair value measurement Standard, IFRS 13, Fair Value Measurement, which showed that the Standard works as intended.

September 2018

On September 20, 2018, the IASB® staff updated the work plan to indicate that the Board plans to issue a Feedback Statement in December 2018.

July 2018 

On July 18, 2018, the IASB staff updated the work plan to indicate that the Board plans to issue a Feedback Statement in Q4/2018.

March 2018 

On March 23, 2018, the IASB staff updated the work plan to indicate that the Board expects to issue a Feedback Statement in the second half of 2018.

January 2018

On January 26, 2018, the IASB Staff updated this project to indicate that the IASB now expects to issue a Feedback Statement; date to be determined.

December 2017 

On December 18, 2017, the IASB staff updated the work plan to indicate that the IASB expects to discuss the Request for Information feedback in January 2018. 

September 2017

On September 22, 2017, the IASB staff updated the work plan to indicate that the IASB expects to discuss the Request for Information feedback in December 2017.

June 2017

In June 2017, the IASB staff updated the work plan to indicate that the IASB expects to discuss the Request for Information feedback in Q4/2017.

May 2017

On May 25, 2017, the 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. Comments are requested by September 22, 2017.

On May 23, 2017, the IASB announced that it will launch the public phase of the post-implementation review (PIR) of IFRS 13, Fair Value Measurement in May. The IASB is now also calling for applications to undertake a literature review on the effect on IFRS 13. The deadline for submission of proposals is June 20, 2017.

March 2017

On March 23, 2017, the IASB staff updated the Work Plan in respect of this project to indicate that the project is now in a drafting phase and that the IASB expects to publish a Request for Information in May 2017.

December 2016

On December 15, 2016, the IASB staff updated the Work Plan in respect of this project to indicate that the IASB expects to decide the project direction by March 2017.

October 2016

On October 20, 2016, the IASB staff updated the Work Plan in respect of this project to indicate that the IASB expects to decide the project direction by January 31, 2017.

 

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