Page 200 - Finac1 Test 1 slides

IFRS 13

Definitions

• IFRS 13 defines fair value as the price that would be

received to sell an asset or paid to transfer a

liability in an orderly transaction between market

participants at the measurement date (i.e. an exit

price).

• The objective of a fair value measurement is:

• to estimate the price at which an orderly transaction (to

sell an asset or to transfer a liability) would take place;

• between market participants;

• at the measurement date; and

• under current market conditions.

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