IFRS 13 Flashcards
Define ifrs 13
PSTOMM - price to sell and asset or transfer a liability in an orderly transaction between market participants in current market conditions
How to find Principal Market & Formula
Market with highest volume of transactions or level of activity
Has access to a market
Will always transact with principal market (presumably)
Based on market participant perspective
Formula = Exit price - TC - TP
If there is NO Principal Market, how to determine one ? (Guidance)
Determine Most Advantegeous Market (MAM)
Max price of Asset / Min price to transfer Liab
Formula = Exit price - TC - TP (net price)
Why does TC not included in FV computation?
Bcs in whatever transaction entity must incur cost (entity specific) and also it is different everytime transaction occurs
MAM/PM incur to max net price
Why take previous volume of sales/expenses? (Historic data)
Actual sales of other markets will be G/(L) when to e’ compared to FV
What is market participant’s ability? (HABU)
A: ability to generate EB ($) by using A @ HABU / sell to another market participant that could use A @ HABU
Does changing of law of A or L changes the method use to measure?
Yes, it changing the usage of A or L would differ method of measuring.
LP - legally permissible
Shd there be evidence to support change in law and usage (consider SAAE - sufficient? Probability, Extent and Timing of evidence)
IASB states that FV based on Exit price, why?
CF2010 - FV needed to sell and asset (recv inflow) or transfer a Liab (pd outflow)
Characterisctics of market participant? (4 letters)
IKAW
-independent (not be related party)
-knowledgable
-ability
-willingness
When to measure FV? Non-recurring, Recurring and Biz combi
Non- recurring -> specified date
Recurring -> DOR
Biz combi (ifrs 3) -> DOA
Exception to ifrs 13 scope
Ias 2 - Lower of cost and NVR
IFRS 2 - FV (op pricing model) at GD/DOR
Ias 36 - CA or RA (VIU and FV - CTS)
Ifrs 16 - FV (cash price)
