CERTYNEX IFRS ACADEMY

No quoted price exists for the transfer of the liability and no third party holds it as an asset. How does the entity measure it?

It gives up fair value measurement and replaces it with a provision.

It uses the amount the entity itself would spend to perform the obligation, with no margin or third-party viewpoint.

It uses the amount recognised on the balance sheet without adjustment.

It applies a valuation technique from the viewpoint of a market participant who assumes the obligation.