Question

Use the Internet to research articles published within the last two years on fair value measurement of assets for financial reporting, then complete the following:

• Evaluate the potential interaction of IFRS13 fair value measurement with other IFRS fair value measurement standards.
• Create an argument for the increased disclosure requirements under IFRS 13 versus other IFRS standards addressing fair value measurement.

Answer 1

sol:

iFRS 13- fair value deals with measurement and disclosure of the fair values. IFRS framework requires accounting at fair value and fair value has been defined under IFRS 13 except IFRS 2 on ESOP. Following standards have interactions with IFRS 13-

a. Revenue recognition at fair value

b. Measurement of financial assets and liabilities under IFRS 9

c. Recognition of assets and liabilities under business combination in IFRS 3.

Entire IFRS framework is interlinked to IFRS 13 because IFRS 13 only defines, provides measurement and disclosure requirements of fair value.

2. There shall be additional disclosure for IFRS because-

a. To ensure comparability of the financials of several companies

b. To ensure usefulness of the financial information and providing understandability to users

c. For good governance practice

d. For more transparency and fairness in disclosures

e. To ensure financials are true and fair