Fair Value Measurement

The IASB has published IFRS 13, Fair Value Measurement. IFRS 13 does not extend or reduce fair value measurement in IFRS financial statements. Instead it sets out a common definition of fair value and common guidance that can be applied when other IFRS require fair value measurement or disclosure.

IFRS 13 defines the fair value of an asset as the price that will be received to sell the asset in an orderly transaction between market participants at the measurement date. It defines the fair value of a liability as the price that will be paid to transfer the liability in an orderly transaction between market participants at the measurement date.