The unit of account

Learning objectives

• Determine the unit of account of an item on the basis of the Standard that requires or permits fair value.L2

Normative references

• IFRS 13 §13The asset or liability measured may be a stand-alone item or a group of assets, of liabilities, or of assets and liabilities; whether it is stand-alone or grouped depends on its unit of account (para. 14).
• IFRS 13 §14The unit of account is determined by the Standard that requires or permits fair value, except as provided in IFRS 13.

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

4 questions

• Who sets the unit of account of an asset or liability measured at fair value?L2
• Depending on the unit of account set by the applicable standard, the item measured at fair value may be: (Several answers.)L2
• Prunelle's measurement procedure states: "IFRS 13 lets us freely choose, for each item, the unit to measure: we use the one that makes the team's work easier." What is the error?L2
• The standard applicable to Vallorge's portfolio of receivables requires it to be measured at fair value and treats the whole portfolio as the unit of account (case data). The team measures each receivable separately and then adds them up. What should the team do?L2