IFRS 13 — Fair Value Measurement
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Effective date: |
Fiscal years beginning on or after January 1, 2013, except for subsequent amendments. Earlier application is permitted. |
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Published by the IASB: |
May 2011 |
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Included in Part I of CPA Canada Handbook: |
November 2011 |
Overview
IFRS 13 Fair Value Measurement applies to IFRSs that require or permit fair value measurements or disclosures and provides a single IFRS framework for measuring fair value and requires disclosures about fair value measurement. The Standard defines fair value on the basis of an 'exit price' notion and uses a 'fair value hierarchy', which results in a market-based, rather than entity-specific, measurement.
The hierarchy categorises the inputs used in valuation techniques into three levels. The hierarchy gives the highest priority to (unadjusted) quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs.
If the inputs used to measure fair value are categorised into different levels of the fair value hierarchy, the fair value measurement is categorised in its entirety in the level of the lowest level input that is significant to the entire measurement (based on the application of judgement).
History of IFRS 13
The following table shows the history of this standard subsequent to the adoption of IFRS in Canada.
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Date1 |
Development |
Comments |
Included in Part I of the CPA Canada Handbook2 |
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May 12, 2011 |
IFRS 13, Fair Value Measurement issued
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This new standard, issued by the International Accounting Standards Board in May 2011, defines fair value, sets out in a single standard a framework for measuring fair value and requires disclosures about fair value measurements. IFRS 13 applies when other IFRSs require or permit fair value measurements. This new standard is effective for annual periods beginning on or after January 1, 2013. Earlier application is permitted. |
November 2011 |
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December 12, 2013 |
Amended by Annual Improvements to IFRSs 2010–2012 Cycle (short-term receivables and payables)
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Amendment to the basis for conclusions only. |
N/A |
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December 12, 2013 |
Amended by Annual Improvements to IFRSs 2011–2013 Cycle (scope of portfolio exception in paragraph 52)
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The amendments clarify that the portfolio exception applies to all contracts within the scope of IAS 39, Financial Instruments: Recognition and Measurement or IFRS 9, Financial Instruments, regardless of whether they are financial assets or financial liabilities. The amendments are effective for annual periods beginning on or after July 1, 2014. Earlier application is permitted. |
March 2014 |
Notes
- For further details of relevant developments prior to this, please refer to our Deloitte Global section.
- Newly issued, amended or revised IFRSs are part of Canadian GAAP only after they are approved by the Accounting Standards Board in accordance with its due process.
Related Interpretations
- None
Related IFRIC Agenda Rejection Notices
The rejection notices are available in our Deloitte Global section.
- IAS 41 & IFRS 13 —Valuation of biological assets using a residual method
AcSB’s IFRS Discussion Group meetings
- June 21, 2018 - IFRS 13: Cannabis Accounting – Recognition and Determining Fair Value
- May 30, 2017 - Post-implementation Review – IFRS 13 Fair Value Measurement
- May 31, 2016 - IFRS 13: Definition of an Active Market
- December 9, 2014 - IFRS 13 and IAS 39: Fair Value Measurement of Government Loans and IFRS 13 and IAS 39: Subsequent Measurement of Fair Value
- June 12, 2014 - IFRS 3, IFRS 13 and IAS 37: Asset Retirement Obligations Assumed in a Business Combination or Asset Purchase
