Key attributes of IFRS 13
- Provides a framework for determining fair value, i.e., it clarifies the factors to consider in estimating fair value in accordance with IFRS.
- Includes descriptions of certain valuation approaches and techniques.
- Does not establish valuation standards on how valuations should be performed.
- Identifies the key principles in estimating fair value consistent with the IASB’s measurement objective.
In addition, IFRS 13 requires that more extensive disclosures be provided, particularly when fair value measurements rely on unobservable inputs.
The new standard applies prospectively for annual periods beginning on or after January 1, 2013.
Although many fair values will remain inherently uncertain, IFRS 13 is an important step forward in establishing consistent fair value measurement and disclosure guidance across IFRSs.
Please contact your KPMG Accounting Advisory Services adviser for more information.