Disclosures required under IFRS 13 - Fair Value Measurements

Tuesday, December 17, 2013

ChartAcc.com - Minimum disclosures required by IFRS 13 (in Tabular form, unless any other format is appropriate) are as follows:
  • Measurement (Value):
    • of the Fair Value at the end of the reporting period
  • Reasons for the measurement:
  • Hierarchy level:
    • of the Fair Value 
    • within which the fair value measurements are categorised 
    • i.e. Level 1, 2 or 3
  • HBU (Highest and Best Use) differs:
    • if HBU of a non-financial asset 
    • differs from its current use, then 
    • disclose the fact that why the non-financial asset is being used in a manner that differs from its HBU.
  • Transfers between Level 1 and Level 2:
    • For assets and liabilities held at the reporting date 
    • that are measured at fair value on a recurring basis, 
    • Disclosure of:
      • Amounts
      • the Reasons for those transfers and 
      • the entity's Policy for determining when transfers between levels are deemed to have occurred, separately disclosing and discussing transfers into and out of each level
  • Classifications under Level 2 and Level 3:
    • Description of the valuation technique(s) and 
    • the Inputs used in the fair value measurement, 
    • Change (if any) in the valuation techniques and 
    • the Reason/s for making such change (with exceptions, if any)
  • Classifications under Level 3:
    • For RFVM and NRFVM
      • Quantitative information of unobservable inputs used in the measurement (with exceptions, if any)
      • Description of the valuation processes used by the entity
    • For RFVM:
      • Changes in unobservable inputs:
        1. Description of the sensitivity of changes in unobservable inputs 
        2. Resulting in a significantly higher or lower fair value measurement
        3. Interrelationships, if any, between these inputs and other unobservable inputs used in the fair value measurement then explain:
          • Nature 
          • Description and 
          • Facts that how they might magnify or mitigate the effect of changes in the unobservable inputs.
      • Alternative Assumptions:
        1. if changing any unobservable input 
        2. to reflect alternative assumptions 
        3. would change fair value significantly 
        4. for financial assets and financial liabilities 
        5. then disclose and explain:
          • That fact,
          • Effect of those changes and 
          • Calculation of the assumption.
      • Reconciliation of opening balances and closing balances then
        disclosing separately changes during the period attributable to:
        1. Total Gains or Losses for the period recognised in:
          • Profit or Loss Account:
            1. Directly as separate line item or
            2. The line item/s in which these are clubbed
            3. separately disclosing the amount attributable to the change in un-realised gains or losses.
          • Other Comprehensive Income:
            1. Directly as separate line item or
            2. The line item/s in which these are clubbed
        2. Purchases, sales, issues and settlements
          • Separate disclosure of all such changes
        3. Transfers into / out of Level 3:
          • Amounts of the transfer
          • Reasons for those transfers
          • Entity's policy for determining when transfers between levels are deemed to have occurred.
          • Incoming and outgoing transfers to be disclosed separately.

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