On 12 May 2011, the International Accounting Standards Board (IASB) issued IFRS 13 Fair Value Measurement. This new Standard is the culmination of a convergence project undertaken together with the United States' Financial Accounting Standards Board (FASB), with the goal of establishing a single set of global accounting standards to measure fair value.
The new Standard clarifies the definition of Fair Value and enhances disclosures about Fair Value measurements, and addresses how to measure Fair Value, not when to measure it.
This article explores the impact the new Standard will have on valuation issues including the Fair Value framework, application to assets and liabilities, and the Fair Value hierarchy.
