IFRS13 Fair value measurement

Scope : The standard applies to most fair value measurements and disclosures (including measurements based on fair value) that are required or permitted by other IFRSs.

Three Basic Principle :  (1) Fair value is the price that woud 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 ) (2) Market participants are independent of each other, they are knowledgeable and have a reasonable understanding of the asset or liability, and they are willing and able to transact. (3) Fair value measurement assumes that a transaction takes place in the principal market (the market having the greatest volume and level of activity) for the asset or liability or, in the absence of a principal market, in the most advantageous market for the asset or liability. ( CDTS. Visual Accounting )