Fair value by category and level

Learning objectives

• Prepare the table of fair values by class and by level of the hierarchy.L2

Normative references

• IFRS 13 §93Minimum disclosures for each class of assets and liabilities measured at fair value after initial recognition: fair value at the end of the period (and reasons for non-recurring measurements), level of the hierarchy, transfers between Levels 1 and 2 (recurring), valuation techniques and inputs for Levels 2 and 3 with quantitative information about significant unobservable Level 3 inputs, reconciliation of Level 3 balances and unrealised gains or losses (recurring, 93(e) and (f)), description of the Level 3 valuation processes (recurring and non-recurring, 93(g)), sensitivity to unobservable inputs (recurring, 93(h)), difference between highest and best use and current use (93(i)).
• IFRS 13 §94Classes of assets and liabilities are determined on the basis of the nature, characteristics and risks of the item and the level of the hierarchy; the entity provides the disclosures for each class.

Original summaries of the paragraphs (reference register), never a quotation of the standard.

4 questions

• How does the entity present, in its notes, the fair values of its assets and liabilities measured at fair value?L2
• Which of the following items of information does the entity provide by class of assets and liabilities for its fair value measurements?L2
• A group's fair value table shows on a single line 'Financial instruments' both Level 1 and Level 3 instruments, without distinguishing the levels. What is the error?L2
• On what criteria does the entity determine the classes of assets and liabilities for the fair value disclosures?L2