When IFRS 13 applies

Learning objectives

• Identify when the Standard applies (another Standard requires or permits fair value) and recall that it does not specify when to measure at fair value.L1

Normative references

• IFRS 13 §4The definition focuses on assets and liabilities, the primary subject of accounting measurement; the Standard also applies to an entity's own equity instruments measured at fair value.
• IFRS 13 §5The Standard applies when another IFRS requires or permits fair value measurements (or disclosures based on fair value), subject to the exclusions; it does not specify when to measure at fair value.
• IFRS 13 §8The measurement framework applies to both initial and subsequent measurement when fair value is required or permitted by another Standard.

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

6 questions

• What is the objective of IFRS 13?L1
• IFRS 13 specifies in which cases an entity must measure its assets at fair value.L1
• In which case does the IFRS 13 measurement framework apply?L1
• Corvesne's accounting procedure states: "IFRS 13 requires us to measure our property, plant and equipment at fair value every year." What is the error?L1
• To which measurements does the IFRS 13 framework apply when another standard requires or permits fair value?L1
• Since the definition of fair value focuses on assets and liabilities, IFRS 13 never applies to the entity's own equity instruments.L1