Page 6 - Finac1 Test 2 slides - 1. Fair Value Measurement (IFRS 13)

IFRS 13

Outcomes

• Identify the scope and purpose of IFRS 13.

• Define fair value and other applicable definitions.

• Understand the following concepts: principal market, most advantageous
market, orderly transaction, market participants and the price.

• Determine the fair value of non-financial assets by referring to the highest and
best use of the asset.

• Apply the specific application of IFRS 13 to liabilities and an entity’s own equity
instruments.

• Identify valuation techniques to be followed which must be consistent with one
or a combination of the either the market, cost or income approach.

• Understand the three levels of fair value measurement, which classification
thereof depends on the degree of observable markets (fair value hierarchy).

• The disclosure requirements of IFRS 13.

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