Transfer restrictions

Learning objectives

• Explain why a restriction on transfer does not call for a separate adjustment.L3

Normative references

• IFRS 13 §45No separate input is included for a restriction preventing the transfer of a liability or of an entity's own equity instrument: the effect is already included in the other inputs.
• IFRS 13 §46Example: since the creditor and the obligor accepted the transaction price with full knowledge of the restriction on transfer, no separate input or adjustment is required for that restriction, either at the transaction date or at subsequent measurement dates.

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

1 question

• A liability of the entity carries a restriction that prevents its transfer to a third party. How is this restriction treated in the fair value measurement?L3