IN In May 2011, the IASB published IFRS 13 Fair Value Measurement. The publication of the standard was the result of a joint project to develop unified system fair value requirements under IFRS and US GAAP.

This standard does not introduce new requirements for when elements financial reporting should be measured at fair value. Instead, it determines how fair value should be measured under IFRS in cases where fair value measurement is required or permitted under the requirements of other standards within IFRS.

The requirements introduced by the new standard are most likely to affect companies that:

are holding back financial instruments;

Use fair value to measure investment property;

Revaluate fixed assets or intangible assets;

They have biological assets and agricultural products.

Reasons for issuing a new valuation standard

fair value

The IASB published IFRS 13 for several reasons. The main one is to simplify and increase the consistency in the application of standards when measuring fair value. Many IFRSs require or allow entities to measure assets, liabilities or equity instruments at fair value or disclose information about the fair value of assets, liabilities or equity instruments. However, prior to the publication of IFRS 13, the description of methods for determining fair value was not detailed, and in some cases the requirements conflicted with each other. IFRS 13 consolidates and clarifies the requirements for measuring fair value.

Another reason was the improvement in fair value disclosures. The IASB believes that the new disclosure requirements will help users better understand the valuation methods and inputs used to determine fair value. It was one of the important measures to overcome the consequences financial crisis adopted by the IASB in response to the wishes of the G20.

The third reason for publishing IFRS 13 was convergence with US GAAP, which were amended in parallel by the FASB. The IASB and the FASB have worked together to ensure that the meaning of the term "fair value" in IFRS and US GAAP and the associated fair value measurement and disclosure requirements are the same. However, there will still be differences between IFRS and US GAAP regarding when fair value is required or permitted.

What are the new principles?

The key features of the fair value measurement concept under the new standard are as follows:

Fair value is defined as 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 (exit price).

The exit price applies regardless of the company's intent and/or ability to sell the asset or transfer the liability at the measurement date.

Fair value measurement assumes that the transaction to sell the asset or transfer the liability occurs in the principal market, ie the market with the highest volume and level of activity for the asset or liability. In the absence of a principal market, it is assumed that the fair value measurement should be based on the conditions in the most favorable market for the entity, i.e. the market in which it is possible to obtain maximum amount in case of sale of an asset, or payment of a minimum amount in case of transfer of a liability, after deducting transaction costs and transportation costs.

In determining fair value, management uses the assumptions that market participants would use when pricing an asset or liability.

In the case of non-financial assets, management should consider the best and most efficient use of the asset by market participants, which may differ from how the asset is currently used.

The fair value of the liability and the entity's own equity instruments is determined from the perspective of a market participant holding the identical instrument as an asset.

The fair value of a liability reflects the impact of default risk, which includes, but may not be limited to, the entity's own credit risk.

When measuring fair value, it is not allowed to take into account “volume factors”. The “volume factor” is the price adjustment for a discount when a market participant sells a large block of assets or liabilities in one or more transactions.

Accounting for premiums and discounts (other than “volume factors”) is allowed if market participants account for such premiums or discounts in the course of transactions for the asset or liability (but only if the inclusion of the premium or discount is in accordance with the unit of account specified in the standard, that requires or permits the use of fair value measurements).

When making a fair value measurement, an entity should make maximum use of relevant observable inputs and minimize the use of unobservable inputs. IFRS 13 provides for a three-level hierarchy of sources for measuring fair value (see below) that prioritizes inputs in fair value measurements.

IFRS 13 requires quoted prices for identical items in active markets (ie Level 1 inputs), if available, as they provide the best evidence of fair value.

	Level 1	Level 2	Level 3
Definition	Quoted (unadjusted) prices in an active market for identical assets or liabilities that are available to the entity at the measurement date	Inputs, other than quoted prices included in Level 1, that are directly or indirectly observable for the asset or liability	Unobservable inputs to measure the asset or liability
Example	Quotations of equity securities traded on the London stock exchange	Interest rates and yield curves that may occur at certain intervals, implied volatility and credit spread	Growth rates applied to cash flows previous periods, which are used to value a business or non-controlling interest in an unlisted company

How to prepare for the application of IFRS 13?

The consequences of applying IFRS 13 will depend on the valuation methods previously used, the methods used accounting policy and the industry in which the company operates. When planning the transition to the use of the standard, certain aspects of financial and operating policies must be considered, recommendations for which are presented below.

Stage 1. Gathering information

Certain procedures and systems may need to be developed or modified to collect information that will be used to apply the new standard, as well as to determine fair value on an ongoing basis and meet new disclosure requirements. In some cases, the services of a third party (valuation experts) may be required to determine fair value. In other cases, management may need information that has not previously been used, such as valuation adjustments for credit risk or risk premiums.

Information collection procedures may vary depending on, for example, the following factors:

Is fair value measured regularly (i.e. at the end of each reporting period, as is required for many financial instruments, for example) or on a one-time basis (i.e., only after certain events such as impairment or classification as non-current assets) intended for sale);

Whether the item being measured is a financial asset or financial liability, or a non-financial asset or non-financial liability;

Is disclosure of fair value only required (for example, if the entity uses the investment property valuation model original cost) or the item is recognized in the financial statements at fair value;

Whether fair value is based on quoted market prices and observable inputs (other than quoted prices), or is it based on unobservable inputs.

Since the levels of disclosure requirements vary, in some situations it may be more appropriate to collect data manually rather than invest in automated systems.

Stage 2. Making critical judgments

Depending on the extent to which an entity uses fair value in its financial statements, and how different previous valuation methods are from IFRS 13, applying this new standard may require significant time and effort, and peer review and making judgments by management. Some of these judgments will require a comprehensive understanding of the nature of the asset, liability or equity instrument being valued, including an analysis of its characteristics, its inherent limitations and the markets in which it is commonly traded. Employees accounting service should not make such judgments without consulting the company's management, personnel responsible for operations, and the company's lawyers. The management of the company needs to be directly involved in the process of implementing new standards and making decisions in areas that require the use of judgment. Audit committees should monitor the involvement of management, review key decisions made by management and challenge them if necessary.

It is essential to determine the following:

Whether the non-financial asset is being used in the best and most efficient way;

Whether the market in which the company usually transacts is the main (or most favorable) market;

Is it appropriate to use a particular valuation method in the circumstances, or is it also possible to use additional methods;

Whether a market participant, acting in its own economic interest, takes into account premiums or discounts when determining the price of an asset;

Is there a significant decrease in the volume and number of transactions concluded on the market;

Is there evidence that the transaction made in the market is not typical;

Whether adjustments to observable inputs are significant to the fair value measurement as a whole;

Is it possible to change two (or more) unobservable parameters as a result of changing another parameter (i.e., are the initial data dependent on each other);

Whether the fair value measurement is sensitive to unobservable inputs (i.e., could a change in unobservable inputs result in a significant increase or decrease in fair value).

Stage 3. Assessment and planning of the consequences of implementation

Understanding how key financial indicators will change after the new standard is applied is extremely important. For example, total assets and total liabilities may increase or decrease, as can total revenue with total costs. As a result, new standards may have an impact on key performance indicators used for the following purposes:

Monitoring financial results companies, both internal and external;

Providing information to analysts and shareholders;

Fulfillment of contractual obligations (covenants) on loans;

Establish targets for bonus payments or determine the conditions for vesting rights to share-based payments;

Compliance with the requirements of regulatory authorities (for example, ensuring a certain ratio of equity and debt capital or a certain ratio of financial leverage);

Determining the income taxes payable and the effective tax rate.

Accordingly, the implications of applying IFRS 13 need to be reviewed not only by the Audit Committee, but also by the Compensation Committee (because it may be necessary to revise established remuneration targets or vesting conditions for share-based payments), and should also be considered as part of the overall analysis economic activity companies.

Whether a company's management uses external or internal resources to measure fair value, it should ensure that valuators are familiar with IFRS 13 and have considered how the adoption of IFRS 13 could affect the company's current valuation practices. . Ultimately, management is responsible for determining the fair value estimates presented in the financial statements. The involvement of external experts to assist in this process does not relieve them of this responsibility.

Further actions

The new standard becomes effective on 1 January 2013 (and is applied prospectively). However, the transition to its implementation will be easier (including avoiding unwanted surprises) if companies begin to plan ahead (see the box below “Five questions that companies need to answer”). To ensure the successful implementation of IFRS 13, it is necessary to track both the progress of its implementation and the critical decisions made during this process.

Five questions that business leaders need to answer:

1. When does an entity use fair value in its financial statements for asset and liability measurement or disclosure purposes?

2. What provisions of the new standard (if any) are most likely to affect existing accounting practices?

3. Which fair value estimates in financial statements are the most subjective and/or sensitive?

4. How will data be collected to meet the new disclosure requirements?

5. Who will be involved in the implementation process? Will services be required independent appraisers? How will the correct application of IFRS 13 (rather than any other valuation framework) be determined (and monitored) by management and the valuers involved?

Fairness in pricing is a somewhat ambiguous term. The correct valuation of the company's assets is very important for many aspects of its activities. It is important that the assessment is not only correct, but also meets the requirements for a particular asset, because they can be different. Each method of determining the cost has its own characteristics and scope, which does not always allow making an unambiguous conclusion for those interested in this information. The way out of the situation may be a fair assessment.

How this type of asset valuation differs from others, what are its characteristic features and, in general, how to deal with fair value, we analyze in this article.

Fair value as an economic concept

Asset valuation is needed in many business situations. It should reliably reflect the state of affairs at the current time, although the market situation is constantly changing. The results of the assessment should be easily interpreted in relation to the interests of different categories of persons. There are different types of assets that can be valued:

• separate objects;
• assets;
• obligations.

IMPORTANT! Determining fair value is not related to mandatory valuation, provided by law and regulations in certain cases, such as, for example, privatization or non-monetary contribution to authorized capital. The state does not regulate fair assessment procedures.

fair value(English “fair value”) is the amount that theoretically interested parties can pay for assets or liabilities (13 IFRS Standard).

Fair value characteristics:

• a specific object is being evaluated;
• the categories of this object that are important for market participants are taken into account (for example, the place, time of the transaction, the state of the asset, the debtor's credit risks for the obligation);
• a fair estimate is affected by possible restrictions on the sale or purchase of an asset or its use.

Purpose of applying fair value

Reflection in reporting according to international standards (IFRS) of the actual current price of assets and liabilities of the company is necessary for:

• activities in international markets;
• attraction of foreign investors;
• lending in foreign banks;
• creation of joint ventures;
• acquisitions and mergers;
• an increase in the company's cost of capital.

When Fair Value Applies

P. 1, Art. 11 of the Federal Law of the Russian Federation dated November 21, 1996 No. 129-FZ “On Accounting”, as amended on March 28, 2002, approves the parameters for assessing assets for entering them into the balance sheet separately for each type. For assets acquired for a fee, you need to apply:

• measurement at fair value, if the asset was paid for in non-cash form;
• market valuation - with a standard sale.

A more accurate translation from the IFRS Standard from English into Russian would be the use of the word “measurement” instead of “estimate”, since we are originally talking about non-financial assets.

IMPORTANT! If the cost is not Money transferred in payment for the asset, it is impossible to evaluate, a fair assessment will become difficult, then they will have to be evaluated at the current market value.

Fair value or market value?

These concepts are largely similar, sometimes a fair assessment coincides with the market one (for example, for real estate, land plots, equipment). market value most often they consider the most expected price that would be paid for it in the presence of free competition.

However, there are significant differences between these concepts. Let's compare the fair and market values ​​for different indicators in the table. In this case, the other default conditions will be considered equal:

• awareness of the seller and buyer of the asset;
• they make a deal of their own free will, without coercion;
• their positions in the market are approximately equal.

№	Base	fair value	Market price
1	Legislative regulation	International Standards(IFRS)	State Standards (RNBO)
2	Valuation Approaches	Depend on the belonging of the assessed object to one of the specific groups	It is necessary to apply three mandatory approaches (cost, income and comparative) or justify the rejection of any of them.
3	Form of settlement for assets or liabilities	non-monetary	Monetary or non-monetary if it cannot be established financial compliance assets transferred in payment
4	Additional factors	All factors expressing advantages or disadvantages for the parties to the transaction should be taken into account.	All subjective factors are ignored, only the “naked” market situation is taken into account
5	Concept mapping	Broader: market value may match fair	Narrower: Not every fair valuation is a market valuation

Fair value calculation

The fair value standard divides the information from which it is derived into three levels.

Level 1, market. The most reliable and obvious. A non-financial asset is valued at its cost in an active market this moment time (point of assessment).

Level 2, corrective. When an asset or liability is not permanent, but relates to a certain period, then its value can only be determined in this period, compared with quotes at the moment. Therefore, the fair value will no longer be unconditional, but adjusted for the time, place, condition of the asset and market features.

Level 3, unobservable. Sometimes the data to determine the value of an asset or liability cannot be directly determined (they are unobservable), in which case it is necessary to analyze the maximum amount of information available about the asset.

A fair valuation of an asset would be at one of these levels:

• the first level determines the undoubted assessment;
• the second and third require additional methods of evaluation and choice conditioning;
• at the third level, it is necessary to provide information related to the assessment: changes in reporting period, the amount of costs and profits for this asset for the period under evaluation, a description of the valuation process.

Choice of Approach to Measuring Fair Value

1. Comparison with similar assets on the market according to the defining indicators: in the period under evaluation, in the same volume, etc.
2. – finding out the ability to make a stable profit from the asset in the forecast for the estimated period.
3. Cost method– based on an analysis of the latest balance sheet values.

Examples of application of fair value

Example 1 The woodworking company currently has boards in abundance. She is in dire need of milling equipment and has agreed to exchange it for a surplus of raw materials. How to determine the amount to be transferred in payment for the machine? To do this, you need to "add up the price" of this asset. This is just his fair assessment. For evaluation, it is necessary to take into account the cost of raw materials for this particular company. If the company has regular suppliers, then the fair value will be the sum of the cost of purchasing a lot of boards of the same volume from these suppliers. In fact, this will be the amount that the owner of the milling equipment will agree to accept in exchange.

Example 2 Company 1 has a stake in company 2, which is currently dormant. Previously, they were highly quoted in the market. At what price can the company sell them now? A fair assessment does not depend on the previous, no longer relevant quotes (market valuation), but on other factors, in particular, whether firm 2 is going to resume its activity and how successful the forecasts are.

Example 3 The firm is going to conclude a deal with specialized property - part of property complex enterprises. On the market, such property is almost never sold separately, so the fair value will have to be determined differently than the market value.

A selection of the most important documents on request fair value(legal acts, forms, articles, expert advice and much more).

Forms of documents: Fair value

Articles, comments, answers to questions: Fair value

d) upon payment to an employee wages V natural form the requirements of reasonableness and fairness in relation to the value of goods transferred to him as payment for labor are observed, i.e. their value in any case should not exceed the level of market prices prevailing for these goods in the given locality during the period of calculation of payments.

Open a document in your ConsultantPlus system:
- the basis and procedure for calculating the interest rate. IN general case it corresponds to the rate at which the present value of future lease payments and the unguaranteed residual value of the leased item equals its fair value. If it is not possible to determine the interest rate in this order, it may be equal to the interest rate for borrowed funds attracted for a period comparable to the lease term (clause 15 of FSB 25/2018);

Regulations: Fair value

2 Fair value is an estimate based on market data, not an entity-specific estimate. For some assets and liabilities, observable market transactions or market information may be available. For other assets and liabilities, observable market transactions or market information may not be available. However, the objective of fair value measurement is the same in both cases - to determine the price at which an orderly transaction would be made between market participants to sell an asset or transfer a liability at the measurement date in the current market conditions(that is, the exit price at the valuation date from the perspective of the market participant that holds the specified asset or owes the specified liability).

IFRS 13 is the result of an attempt to bring IFRS and US GAAP closer together. Let's consider what this standard is and what requirements it imposes on fair value measurement under IFRS.

Many IFRS standards require you to estimate the fair value of certain items. Let's just give examples: financial instruments; biological assets; assets held for sale; and many others.

In the past, standards have provided limited guidance on how to determine fair value. The rules applied to all standards and their application was often highly controversial.

Finally, IFRS 13 Fair Value Measurement was published. Among other things, IFRS 13 is the result of an attempt to converge IFRS and US GAAP, and at present, the rules for measuring fair value in IFRS and US GAAP are practically the same.

So, let's see what this standard is.

What is IFRS 13?

The objectives of IFRS 13 are:

• determination of fair value;
• formation of a unified IFRS concept for measuring fair value; and
• requirement to disclose information on fair value measurements.

Fair value is a market indicator, and not the result of the valuation of specific objects.

This means that the company:

• should be based on how market participants will value assets or liabilities;
• should not take into account its own approach to evaluation.

What is fair value?

Fair value (FV, from the English "fair value") is the selling price of an asset or settlement of a liability in an orderly transaction between market participants at the measurement date.

Fair value corresponds to the market concept exit prices.

When an entity performs a fair value measurement, it must determine all of the following:

• specific asset or liability, which needs to be estimated (according to its unit of account);
• for a non-financial asset - justification for the estimate(i.e. justification for the best and most efficient use of the asset);
• main (or most profitable) market for that asset or liability;
• suitable assessment methods, considering:
  • data availability to develop the assumptions that market participants use in determining the price of an asset or liability; and
  • level fair value hierarchy, within which the source data are classified.

asset or liability.

An asset or liability measured at fair value may be:

• separate asset or liability (eg. security or pizza oven)
• group assets, a group of liabilities, or a group of assets and liabilities. For example, controlling stake holding more than 50% of the voting power in any company, or a cash generating unit (CGU) that is a pizzeria.

An asset or liability (whether individual or group) depends on its unit of account. The unit of account is determined in accordance with another IFRS that requires or permits fair value measurement (for example, IAS 36 Impairment of Assets).

When measuring fair value, an entity considers the characteristics of the asset or liability that a market participant would take into account when pricing the asset or liability at the measurement date.

These characteristics include, for example:

• the condition and location of the asset;
• restrictions on the sale or use of the asset.

The concept of a deal.

Fair value measurement assumes that the asset or liability is subject to orderly transaction between market participants as of the valuation date under current market conditions.

Regular deal.

A deal is considered normal when it has 2 key components:

• market participants have the opportunity to obtain sufficient information about the assets or liabilities necessary to complete the transaction;
• market participants are motivated to trade assets or liabilities (not forced).

Market participants.

Market participants are buyers and sellers on the main or most profitable market for an asset or liability with the following characteristics:

• independent;
• knowledgeable;
• capable of entering into transactions;
• willing to make deals.

The main or most profitable market.

A fair value measurement assumes that a transaction to sell an asset or transfer a liability takes place either:

• in the main market for that asset or liability; or
• in the absence of a main market - in the best market for an asset or a liability.

Main market ("principal market") is the market with the highest volume and level of activity for the asset or liability. Different organizations may have different primary markets, as a company's access to a particular market may be limited.

most advantageous market") is the market that maximizes the amount to be received from the sale of an asset, or minimizes the amount to be paid on the transfer of a liability, after accounting for transaction and transportation costs.

Application of the standard to non-financial assets.

The fair value of a non-financial asset is measured based on its most efficient and best use from a market participant's point of view.

Highest and best use means the use of an asset that:

• physically possible- it takes into account physical characteristics, which will be taken into account by market participants (for example, the location or size of the property);
• legally admissible- it takes into account legal restrictions on the use of the asset, which market participants take into account (for example, zoning rules); or
• financially feasible- it considers whether the use of the asset results in income or cash flows that allow for an adequate investment return from the point of view of market participants.

The best use of a non-financial asset may be to use it alone or in combination with other assets and/or liabilities (as a group).

When the highest and best use relates to a group of assets/liabilities, the synergies associated with that group may be reflected in the fair value of an individual asset in several ways, for example, by adjusting valuation techniques.

Application of the standard to financial liabilities and own equity instruments.

The fair value measurement of a financial or non-financial liability or an entity's own equity instrument assumes that the asset or instrument is transferred to a market participant on the measurement date, without settlement or cancellation.

An entity determines the fair value of a liability or equity instrument based on market price of an identical instrument, if any.

If a quoted market price for an identical instrument is not available, the fair value measurement depends on whether whether the liability or equity instrument is held (accounted for) by the other party as an asset or not:

• If the liability or equity instrument is accounted for by the other party as an asset, then:
  • if there is a quoted price in an active market for an identical instrument held by the other party, then that is used (adjustments are possible for asset-specific factors, but not for liability/equity instrument);
  • if there is no quoted price in an active market for an identical instrument held by the other party, then other valuation methods are used.
• if the liability or equity instrument is not accounted for as an asset by another party, then the valuation method applicable from the market participant's point of view is used;

This confusing algorithm can be illustrated with the following simplified diagram:

The fair value of the liability reflects the impact non-performance risk. Those. it is the risk that the company will default on its obligation.

The risk of default includes own credit risk, but is not limited to them.

For example, the risk of default may be reflected in different interest rates for different borrowers due to their different credit scores. As a result, they will have to discount the same liability different rate discounted, so the present value of the liability will be different.

Restrictions on the transfer of a liability or equity instrument.

An entity shall not include a separate input or adjustment to other inputs that is associated with a potential constraint that prevents the liability or equity instrument from being transferred to someone else.

Repayment on demand.

The fair value of the liability since redemption on demand ("demand feature") must not be less than the amount payable on demand, discounted from the first date payment can be called.

Application of the standard to financial assets and financial liabilities with offsetting positions.

IFRS 13 requires an entity to make market valuations rather than valuations based on the entity's own data. However, there exception to this rule:

If a company manages a group of financial assets and financial obligations on the basis of their NET exposure to market or credit risk, an entity may measure the fair value of that group on a net basis, as follows:

• The price that will be received from the sale of a net long position (asset) for a particular risk, or
• The price that will be paid to transfer a net short position (liability) for a particular risk.

This is an arbitrary assessment option, and the company does not have to follow it. To apply this exemption, a company must meet the following conditions:

• It must manage a group of financial assets/liabilities on the basis of their net exposure to market/ credit risk in accordance with a documented risk management strategy, or investment strategy,
• It provides information about a group of financial assets/liabilities to key management personnel,
• She appreciates these financial assets and liabilities at fair value in the statement of financial position at the end of each reporting period (but not at amortized cost or on any other basis of measurement).

Fair value at initial recognition.

When an entity acquires an asset or incurs a liability, the price paid/received or the transaction price is entry price.

However, IFRS 13 defines fair value as the price to be received to sell an asset or paid to transfer a liability, and this exit price.

In most cases, the transaction (entry) price is equal to the exit price or fair value. But there are situations where the transaction price is not necessarily the same as the exit price or fair value:

• the transaction takes place between affiliated parties;
• the transaction occurs under pressure or the seller is forced to accept the price of the transaction;
• the unit of account represented by the transaction price is different from the unit of account for the asset or liability measured at fair value;
• the market in which the transaction takes place is different from the main or most profitable market.

If the transaction price differs from fair value, the entity must recognize the resulting gain or loss, unless another IFRS specifies otherwise.

Methods for estimating fair value.

When determining fair value, an entity should use valuation techniques:

• appropriate in the circumstances;
• for which there are sufficient data necessary to measure the fair value;
• that make the most of the observed input data;
• that make minimal use of unobservable input data.

The valuation techniques used to measure fair value are applied consistently from period to period.

Nevertheless, the company can change the valuation method or its application if, in the circumstances, the change results in the same or a more representative fair value.

An entity accounts for a change in valuation method in accordance with IAS 8 in relation to a change in accounting estimate.

IFRS 13 allows for three measurement approaches:

• Market approach ("market approach"): it uses prices and other significant information generated by market transactions involving identical or comparable (i.e. similar) assets, liabilities, or a group of assets and liabilities;
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  IFRS 13 defines fair value hierarchy, which classifies the input data for estimation methods into 3 levels. The highest priority is given to the level 1 source data, and the lowest priority is given to the level 3 source data.

  The company should maximize the use of Tier 1 inputs and minimize the use of Tier 3 inputs.

  Level 1

  Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities to which the entity has access at the measurement date.

  The company should not make adjustments to market prices. An exception is allowed only in certain circumstances, for example, when the quoted price does not reflect fair value (ie, when a significant event occurs between the valuation date and the quoted date).

  Level 2

  Level 2 inputs differ from the quoted prices included in Level 1. However, they remain observable - they can be observed directly or indirectly in relation to the asset or liability.

  Level 3

  Level 3 inputs are unobservable for the asset or liability.

  An entity shall use Level 3 data to measure fair value only when relevant observable data is not available.

  The following diagram describes the fair value hierarchy, along with examples of inputs to valuation techniques:

  Fair value disclosure.

  IFRS 13 requires wide disclosure enough information about:

  • valuation methods and inputs used to measure fair value both on a recurring (periodic) basis and for a one-time valuation;
  • the effect on profit or loss or other comprehensive income of periodic fair value measurements using significant Level 3 inputs.

  Recurring fair value measurements reflected in the report on financial position at the end of each reporting period (for example, financial instruments).

  Non-recurring fair value measurements recognized in the statement of financial position in certain circumstances (for example, an asset held for sale in accordance with IFRS 5).

  Since the disclosures are indeed extensive, here are examples of minimum disclosure requirements:

  • fair value estimate at the end of the reporting period;
  • reasons for the assessment (for a one-time assessment);
  • the level of classification in the fair value hierarchy,
  • description of the assessment methods used and input data;
  • and many others.

Application of fair value in formation financial indicators activities of companies Application of fair value in the formation of financial indicators of companies' activities Round table "Through effective management company to a more stable economy" Grishkina Svetlana Nikolaevna Professor of the Department "Accounting in commercial organizations »

Regulations on the recognition of International Financial Reporting Standards and Interpretations of International Financial Reporting Standards for application in the territory of the Russian Federation (Decree of the Government of the Russian Federation No. 107) The federal law On consolidated financial statements 208-FZ dated r On accounting 402-FZ dated

Fair value The exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or most advantageous) market at the measurement date under current market conditions. IFRS 13 Fair Value Measurement May 12, 2011

Pros and cons Increased transparency of information Completeness Difficulty in pricing Recognition of large losses during a crisis Approach to measuring fair value: For measurement purposes, you need to determine: The specific asset or liability being valued most favorable) market Appropriate valuation technique Input to valuation technique based on market participant assumptions

IFRS 13: defines fair value; establishes the concept of fair value measurement in a separate IFRS; and governs disclosures about fair value measurements; explains how to measure fair value for financial reporting; requires fair value measurements in addition to those already required or permitted by other IFRSs.

3 approaches to measurement market approach – fair value is estimated based on data on prices of transactions with similar objects; income approach - based on determining the present value of future income from the operation and / or possible sale of the property being valued; cost approach– fair value is determined based on the cost of construction/acquisition of an object similar in its usefulness to the object being evaluated.

International Valuation Standards The International Valuation Standards Council (IVSC) was formed in 1981. The first edition of the International Valuation Standards was published in 1985. The official translation of the first edition is available in the ConsultantPlus system

Last revision On July 19, 2011, the International Valuation Standards Committee (IVSC) published information on the release of new edition International Valuation Standards (IVSC 2011). International Valuation Standards 2011 are effective from January 1, 2012. Document on English language presented on the official website - There is no official translation into Russian

Fair value in IVS Presented in the application standard IVS 300 Valuations for Financial Reporting – “Valuation for Financial Reporting Purposes” Key points: The existing thesis is confirmed that fair value in the context of accounting measurements generally corresponds to market value in an estimated sense. The meaning of three-level data hierarchies is explained when using the valuation approaches enshrined in IFRS 13. The problem of asset aggregation when they are accounting dimension at fair value.

Fair value in IVS The Standard defines fair value under IFRS 13 as 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.

EPO 1. Valuation for Financial Reporting Purposes In the absence of current prices in an active market, the valuer should consider information from a variety of sources, including: other terms of the lease or other agreements), - subject to the introduction of adjustments to reflect such differences;

EPO 1. Valuation for financial reporting purposes 2. recent prices of comparable properties in less active markets - adjusted to reflect any changes economic conditions for the time elapsed from the dates of transactions that were made at these prices;

EPO 1. An estimate for financial reporting purposes 3. Discounted cash flow projections based on reliable estimates of future cash flows supported by the terms of any existing leases or other contracts and, when possible, external evidence such as current market rents for comparable properties in the same location and condition, using discount rates that reflect current market valuations uncertainties about the magnitude and time profile of the cash flows under consideration.

Procedures for measuring fair value on the example of fixed assets The main stages of the procedure for measuring the fair value of fixed assets include: 1) visiting the enterprise and collecting information about fixed assets; 2) analysis of the composition and condition of fixed assets; 3) analysis of technical and economic indicators of the enterprise; 4) industry market analysis; 5) market value assessment liquid assets; 6) assessment of replacement cost less depreciation of specialized assets; 7) test for economic depreciation (analysis of additional external wear); 8) control measures, preparation of the conclusion and necessary statistics.

Lack of an active market Monopolization Competition mechanism lost Economic instability Corruption Shadow business Valuation mechanism not regulated Lack of free cash High inflation risks Lack of transparency of transactions Underdevelopment of valuation activities