Why you should follow this course
Fair value measurements may:
have significant impact on financial statements, because more and more it is underpinning the measurement used in the primary financial statements and the related note disclosures;
involve significant judgment and high estimation uncertainty.
includes all the guidance on how to measure fair values in a single standard;
introduced new or changed guidance for measuring fair value and related fair value disclosures;
is pervasive and impacts most IFRSs that require or permit fair value measurement or disclosure.
It is therefore important to have a good understanding of what IFRS 13 requires in
terms of both fair value measurement and disclosures about those measurements.
The purpose of the module is to enable you to understand the implications of IFRS 13
and understand the key practice issues when applying this standard.
By completing this module, you will be able to:
Explain the scope of IFRS 13.
Outline the basic principles behind fair value measurement.
Describe valuation techniques to measure fair value.
Categorize inputs and fair value measurements in the fair value hierarchy.
Explain when to include premiums and discounts in fair value measurement.
Explain the use of bid, mid or ask prices.
Use your judgement to consider if a transaction is orderly.
Apply fair value principles to financial instruments and non-financial assets.
Explain some of the application issues in measuring fair value.
Describe some of the key disclosures required by IFRS 13.