IFRS - IFRS 13 Fair Value Measurement

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• principal market

• price that would be received to sell an asset or paid to transfer a liability in an orderly transaction

• take into account the characteristics of the asset or liability if market participants would take those characteristics into account

• condition

• location

• restrictions

• most advantageous market

• assumes that the asset or liability is exchanged in an orderly transaction

• assuming that market participants act in their economic best interest.

• takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it

• assumes that a financial or non‑financial liability or an entity’s own equity instrument (eg equity interests issued as consideration in a business combination) is transferred to a market participant at the measurement date

• liability would remain outstanding and the market participant transferee would be required to fulfil the obligation

• entity’s own equity instrument would remain outstanding and the market participant transferee would take on the rights and responsibilities associated with the instrument

• measure the fair value of the liability or equity instrument from the perspective of a market participant that holds the identical item

• measure the fair value of the liability or equity instrument using a valuation technique from the perspective of a market participant that owes the liability

• Non‑performance risk is assumed to be the same before and after the transfer of the liability

• appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs