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IFRS 13 — Unit of account

Background

A project to consider the unit of account for financial assets that are investments in subsidiaries, joint ventures and associates measured at fair value, in particular, whether the fair value of such investments should reflect the measurement of the investment as a whole or of the individual financial instruments included within that investment.

In developing IFRS 13 Fair Value Measurement, the IASB intended to prioritise Level 1 inputs into the fair value hierarchy but did not expressly state that Level 1 inputs should be prioritised even when those inputs to not correspond to the unit of account of the asset measured (the investment as a whole). Therefore, questions arose on the unit of account for investments in subsidiaries, joint ventures and associates and on their fair value measurement when those investments are quoted in an active market. Similarly, the IASB also received questions on the measurement of the recoverable amount of cash-generating units (CGUs) on the basis of fair value less costs of disposal when they correspond to entities that are quoted in an active market.

 

Current status of the project

This project has been discontinued. At its January 2016 meeting the IASB decided to continue work in this area as part of the post-implementation review of IFRS 13. The review is expected to take place during 2016.

 

Project milestones

DateDevelopmentComments
16 September 2014 ED/2014/4 Measuring Quoted Investments in Subsidiaries, Joint Ventures and Associates at Fair Value (Proposed amendments to IFRS 10, IFRS 12, IAS 27, IAS 28 and IAS 36 and Illustrative Examples for IFRS 13) published Comments requested by 16 January 2015
January 2016 project discontinued the IASB decided to continue work in this area as part of the post-implementation review of IFRS 13

 

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.