Understanding Fair Value: Is It Simply Market Value? (IFRS 13 Fair Value Measurement)

May 7, 2026

Upload by Patrick

IFRS 13 Fair Value Measurement explains fair value as an exit price determined in an orderly transaction between market participants on the measurement date. The guidance distinguishes fair value from entry price concepts by focusing on the price that would be received to sell an asset or paid to transfer a liability. It emphasizes that fair value is defined per unit and depends on the unit of account required under IFRS, such as individual items versus groups of assets and liabilities. The discussion addresses how premiums and discounts are applied only in certain unit-of-account situations, including contrasts between large shareholdings and controlling interests with control premiums. It also clarifies that orderly transactions exclude forced or distressed sales, and assumes both willing buyers and knowledgeable sellers with access to relevant information.

LanguageEnglish

CategoryResearch & Report

FormatPDF

Pages10

Reading Time25 min

AccessFree to download

May 7, 2026

Upload by Patrick