iGAAP Alert: May 2011
IASB issues new standard on fair value measurement and disclosure
IFRS 13 does not include requirements on when fair value measurement is required; instead it prescribes a consistent basis for how fair value is to be measured if other standards require it.
The new Standard is a one stop shop for fair value requirements applicable to financial and non-financial items. It defines fair value (as an exit price for both assets and liabilities), provides a unified guidance on its determination and introduces consistent requirements for disclosures.