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IFRS 13Workpapers (Step 4 of 5)

Workpaper template

Step 4 of 5
WorkpaperIFRS 13 — Fair Value MeasurementL2 · L3 · L4

Fair value measurement memo

4 missions7 sections to document60 min
Prepared by
AI-assisted draft
Reviewed by
Not reviewed — human review required
Status
Published

Objective of the workpaper

For each item measured (one instance per item), describe the item and its unit of account, compare the markets available (net amount received, volume and activity), document the highest and best use of a non-financial asset (value under each use less conversion costs), reconcile the indications of the techniques (weighting, expected cash flow, present value), then justify the three judgements: reference market, highest and best use, unobservable inputs.

7 sections · 38 blocks · 9 calculations · 0 entries

  • IFRS 13 §24
  • IFRS 13 §25
  • IFRS 13 §26
  • IFRS 13 §27
  • IFRS 13 §28
  • IFRS 13 §29
  • IFRS 13 §61
  • IFRS 13 §63
  • IFRS 13 §67

Work this workpaper as a mission

Each case that uses this template opens in the mission workspace: data, analysis, calculation, entries, conclusion and review, with your progress saved.

4 instances from the cases: the calculations and entries below are run by the calculation engine.

File and entity
Principal market, most advantageous market, transaction and transport costs: Mécanor's hydraulic press
Case tasks documented here
  • Compute the net amount received in each market.
  • Which market maximises the net amount received?
  • Which market underlies the measurement? Justify.
1

Inputs

Inputs

  • Item measured and unit of account

    TextRequired

    PRESSE_HYDRAULIQUE_UNITE_UNIQUE

  • Markets available: volume, level of activity and access at the measurement date

    Text

    MARCHES_LYON_ET_ROTTERDAM

  • Price in market A

    Number

    1,250,000

  • Transaction costs of market A

    Number

    25,000

  • Transport costs to market A

    Number

    40,000

  • Price in market B

    Number

    1,320,000

  • Transaction costs of market B

    Number

    30,000

  • Transport costs to market B

    Number

    70,000

  • Value under use A (before conversion costs)

    Number

  • Conversion costs needed for use A

    Number

  • Value under use B (before conversion costs)

    Number

  • Conversion costs needed for use B

    Number

  • Indications of the techniques and weights (percentage, total 100)

    Table

  • Possible cash flows and probabilities (percentage, total 100)

    Table

  • Amount to discount

    Number

  • Discount rate observed on comparable items (%)

    Number

  • Number of discounting periods

    Number

2

Supporting evidence

Evidence

  • Evidence obtained and referenced (category, document reference)

    EvidenceRequired

3

Analysis of the market, highest and best use and technique

Analysis

IFRS 13 §24IFRS 13 §25IFRS 13 §26IFRS 13 §27IFRS 13 §28IFRS 13 §29IFRS 13 §61IFRS 13 §63IFRS 13 §67

  • Points reviewed: reference market

    ChecklistRequired

    • Access to the market at the measurement date
    • Volume and level of activity compared between markets
    • Transaction costs not deducted from the price used
    • Transport costs deducted if location is a characteristic

  • Points reviewed: highest and best use of a non-financial asset

    ChecklistRequired

    • Use physically possible
    • Use legally permitted
    • Use financially feasible
    • Market participants' view, not the entity's

  • Points reviewed: technique and inputs

    ChecklistRequired

    • Techniques appropriate to the circumstances and the data available
    • Maximum use of observable inputs, minimum use of unobservable inputs
    • Indications weighted by relevance and reliability
4

Calculations

Calculations

IFRS 13 §25IFRS 13 §26IFRS 13 §27IFRS 13 §63

  • Net amount received in market A

    Calculation

    1,185,000

    Price in market A ; − Transaction costs of market A ; − Transport costs to market A

  • Net amount received in market B

    Calculation

    1,220,000

    Price in market B ; − Transaction costs of market B ; − Transport costs to market B

  • Higher net amount (most advantageous market)

    Calculation

    1,220,000

    Net amount received in market A ; Net amount received in market B

  • Net value under use A

    Calculation

    0

    Value under use A (before conversion costs) ; − Conversion costs needed for use A

  • Net value under use B

    Calculation

    0

    Value under use B (before conversion costs) ; − Conversion costs needed for use B

  • Value under the highest and best use (highest net value)

    Calculation

    0

    Net value under use A ; Net value under use B

  • Weighted fair value of the indications

    Calculation

    Indications of the techniques and weights (percentage, total 100)

  • Expected cash flow (before discounting)

    Calculation

    Possible cash flows and probabilities (percentage, total 100)

  • Present value at the observed rate

    Calculation

    Amount to discount ; Discount rate observed on comparable items (%) ; Number of discounting periods

5

Professional judgements

Judgment

IFRS 13 §24IFRS 13 §28IFRS 13 §63IFRS 13 §67

  • Reference market

    JudgmentRequired

    Principal market: highest volume and activity

    Principal market: highest volume and activity / No principal market: most advantageous market

  • Rationale: facts relied on, analysis, alternative rejected

    TextRequired

  • Highest and best use

    JudgmentRequired

    The current use is the highest and best / An alternative use is the highest and best

  • Rationale: facts relied on, analysis, alternative rejected

    TextRequired

  • Techniques and unobservable inputs

    JudgmentRequired

    Indication based on observable inputs retained / Indication based on unobservable inputs retained / Indications weighted

    Professional judgement: the weighting of the indications and the choice of unobservable inputs rest on the relevance and reliability of each; no weighting is imposed.

  • Rationale: facts relied on, analysis, alternative rejected

    TextRequired

6

Conclusion

Conclusion

  • Market, highest and best use, technique and fair value submitted to the reviewer

    ConclusionRequired

7

Normative references

References

  • Paragraphs cited in this workpaper and their verification status

    References

8

Checks and financial statement impact

  • Market documentedPass
  • Highest and best use documentedNot filled in this instance
  • Technique documentedNot filled in this instance
Assets
0
Liabilities
0
Profit or loss
0
OCI
0
Equity
0