Robust notion meaning9/2/2023 ![]() ![]() The hierarchy gives the highest priority to (unadjusted) quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The hierarchy categorises the inputs used in valuation techniques into three levels. ![]() IFRS 13 seeks to increase consistency and comparability in fair value measurements and related disclosures through a 'fair value hierarchy'. a business) within which the asset would be used Most advantageous market The market that maximises the amount that would be received to sell the asset or minimises the amount that would be paid to transfer the liability, after taking into account transaction costs and transport costs Principal market The market with the greatest volume and level of activity for the asset or liability Fair value hierarchy Fair value The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date Active market A market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis Exit price The price that would be received to sell an asset or paid to transfer a liability Highest and best use The use of a non-financial asset by market participants that would maximise the value of the asset or the group of assets and liabilities (e.g. measurements that have some similarities to fair value but that are not fair value, such as net realisable value in IAS 2 Inventories or value in use in IAS 36 Impairment of Assets.Īdditional exemptions apply to the disclosures required by IFRS 13.leasing transactions within the scope of IAS 17 Leases.share-based payment transactions within the scope of IFRS 2 Share-based Payment.IFRS 13 applies when another IFRS requires or permits fair value measurements or disclosures about fair value measurements (and measurements, such as fair value less costs to sell, based on fair value or disclosures about those measurements), except for: ![]()
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