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IASB happy with IFRS13
21 December 2018
The International Accounting Standards Board has published its summary report on its post-implementation review of the fair value measurement standard, IFRS 13, which shows the standard is working as intended.
The board conducts a PIR of new standards and major amendments to a standard after they have been in use around the world for 2 or 3 years. The purpose is to consider, with input from stakeholders, whether the standard functions as expected and whether the information it requires companies to provide is useful to users of financial statements. A PIR also assesses whether any unexpected costs have arisen during implementation.
IFRS 13 ‘Fair Value Measurement’ was issued in 2011 and came into effect in 2013. It provides principle-based guidance on how to measure fair value and disclosure requirements. IFRS 13 does not determine when fair value measurement is to be used.
The PIR did, however, identify some challenges linked to the judgment the standard requires companies to apply. Companies are finding ways to resolve these challenges and the board has decided to monitor developments in this area.
Hans Hoogervorst, chair of the International Accounting Standards Board, said: “Post-implementation reviews are our way to check whether a standard does the job it is intended to do. Stakeholder feedback and research on IFRS 13 show that overall the standard works well.”
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