IFRS 13 Fair Value Measurement
Fair value is a market-participant exit price for an orderly transaction at the measurement date. Identify the asset or liability, principal or most advantageous accessible market and appropriate valuation technique. The fair-value hierarchy prioritises unadjusted quoted prices for identical items in active markets over less observable inputs. IFRS 13 does not itself require every asset or liability to be measured at fair value.
Worked example
Identical shares trade in an active market at $12 each at the reporting date. If the quoted price is accessible and applicable, 100 shares have a Level 1 fair value of $1,200 before considering any applicable unit-of-account requirements.
Common mistake
Treating a company’s intended selling price as automatically the fair value, or assuming IFRS 13 requires every asset to be revalued.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | FR | Direct | September 2026–June 2027 |
| ACCA | SBR | Direct | September 2026–June 2027 |