IAS 36 How Impairment test

IAS 36 How Impairment test is all about this – When looking at the step-by-step IAS 36 impairment approach it comes down to the following broadly organised steps: IAS 36 How Impairment test

  • What?? – Determining the scope and structure of the impairment review, explained here,
  • If and when? – Determining if and when a quantitative impairment test is necessary, explained here,
  • IAS 36 How Impairment test or understanding the mechanics of the impairment test and how to recognise or reverse any impairment loss, if necessary. Which is explained in this section…

The objective of IAS 36 Impairment of assets is to outline the procedures that an entity applies to ensure that its assets’ carrying values are not … Read more

Fair value

Fair value is 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.

Measurement basis

Measurement basis - An identified feature of an item being measured (for example, historical cost, fair value through profit or loss or OCI or fulfilment value).

Transaction costs

Transaction costs are of importance in IFRS because they are or are not included in the carrying value at initial recognition of assets, liabilities and equity.

The 15 most important IFRS 13 Topics

The 15 most important IFRS 13 Topics – The fair value measurement standard applies to most fair value measurements and disclosures (including measurements based on fair value) that are required or permitted by other standards. The 15 most important IFRS 13 Topics

Overview

  • ‘Fair value’ is 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.
  • What is being measured – e.g. a stand-alone asset or a group of assets and/or liabilities – generally depends on the unit of account, which is established under the relevant standard.
  • Fair value is based on assumptions that market participants would use in pricing the asset or
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IFRS 13 Measure non-financial assets liabilities

IFRS 13 Measure non-financial assets liabilities highlights key considerations in applying the fair value standards to develop the fair value measurements of non-financial assets and non-financial liabilities. It also addresses the considerations applicable to determining the fair value measurements often used to record business combinations and in impairment assessments.

When determining the fair value of non-financial assets and liabilities, it is important to consider the IFRS guidance and the valuation standards from the International Valuation Standards Council, which include chapters on business and business interests, intangible assets, plant and equipment, real property interests, and development property.

The fair value standards IFRS include the following fair value concepts: IFRS 13 Measure non-financial assets liabilities

  1. Selecting the appropriate market IFRS 13 Measure
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Fair value measurement in short

Fair value measurement in short is a brief introduction to some of the key terms used in fair value measurement, as well as a diagram that shows the flow in relation to the process of measuring fair value and determining the appropriate disclosures.

The key term that drives this process is fair value: 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. Fair value is an exit price (e.g. the price to sell an asset rather than the price to buy that asset). An exit price embodies expectations about the future cash inflows and cash outflows associated with an asset or … Read more