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Request for Information: Post-implementation Review – IFRS 13 Fair Value Measurement

The International Accounting Standard Board (IASB) Request for Information (RFI) on IFRS 13 Fair Value Measurement is part of the IASB’s Post Implementation Review (PIR) on IFRS 13. It is aimed to assess the effect of IFRS 13 on financial reporting. 

IFRS 13 defines fair value, sets out in a single IFRS Standard a framework for measuring fair value and requires disclosure about fair value measurements. IFRS 13 does not determine when an asset, a liability or an entity’s own equity instrument is measured at fair value. Rather, the measurement and disclosure requirements of IFRS 13 apply when another IFRS Standard requires or permits an item to be measured at fair value. The focus of this PIR is on assessing the effect of IFRS 13 and not on assessing the effect of any other IFRS Standards that require or permit fair value measurement

In particular, the IASB has set the following areas of focus and objectives of further assessment for each:

Areas of focus Objectives of further assessment
Disclosures about fair value measurements. To gain a deeper understanding of both users’ and preparers’ perspectives on the usefulness of fair value measurement disclosures.
Prioritising Level 1 inputs or the unit of account. To further assess the extent and effect of the issue as well as current practice.
Application of the concept of the highest and best use when measuring the fair value of non-financial assets. To better understand the challenges when applying this concept, and to assess how pervasive it is and whether further support could be helpful.
Application of judgement in specific areas To better understand the challenges when applying this concept, and to assess how pervasive it is and whether further support could be helpful.


In addition, the RFI also explores whether there is a need for further guidance, such as education material, on measuring the fair value of biological assets and unquoted equity instruments.

The RFI initiates phase 2 of the PIR. Depending on the nature of the findings, the IASB may decide to:

(a)  take no further steps;

(b)  continue monitoring the implementation of IFRS 13; for example, if the results of the PIR are conclusive;

(c)  develop, or facilitate development of, further guidance, such as education material, on one or more specific aspects of the application of IFRS 13; or

(d) revise IFRS 13 to address problems identified by the PIR. The IASB would discuss any standard-setting response—from an annual improvement or narrow-scope amendment to a proposal for a standards-level project to change the accounting or disclosure requirements—as part of the agenda-setting process, applying the IASB’s normal due process.

To download the Request for Information, click here.

Invitation to comment

 The Exposure Draft is open for comment until 31 July 2017.

 You may provide your comments online or email us at technical@masb.org.my.