The IASB has issued a request for information seeking feedback in several areas of focus
Since it came into effect in 2013, IFRS 13 Fair Value Measurement has given rise to a number of implementation issues. In response, the IASB has issued a request for information (RFI) on this standard. It seeks feedback from constituents on their experience of IFRS 13 so that the IASB can assess whether the standard is achieving its objectives.
To help assess whether new accounting standards and major amendments work as intended, the IASB conducts post-implementation reviews as part of its due process. The post-implementation review (PIR) of IFRS 13 consists of two phases.
During the first phase, the Board held meetings with many stakeholders to identify potentially challenging areas of application. Although the general consensus from stakeholders was that IFRS 13 has worked well and brought significant improvements to financial reporting, a number of areas were flagged in which it was felt that practical improvements could be made to the standard. The RFI launches the second phase of the PIR.
“There’s a real opportunity here for preparers to help shape improvements to IFRS 13 – a standard which for all its strengths can sometimes present tough implementation challenges. We encourage you to share your experience with the IASB.”
Wolfgang Laubach, KPMG’s global IFRS valuation and impairment topic team leader
In this second phase of the PIR, the IASB aims to assess whether:
Based on the feedback received in the first phase of the PIR, the RFI is now seeking responses to a number of questions including the following.
|Area of focus||Questions|
|Disclosures about fair value measurements – main
focus on Level 3 disclosures
|Prioritising Level 1 inputs (PxQ) or the unit of account – measuring
quoted investments in subsidiaries, joint ventures and associates at fair value
|Application of the concept of ‘highest and best use’ (HBU) for non-financial
|Application of judgement in specific areas||
In addition, the RFI explores the need for further guidance, such as education material, on measuring the fair value of biological assets and unquoted equity instruments.
If some of these issues affect you, we encourage you to share your experience of applying IFRS 13. The RFI is open for comment until 22 September 2017.
The IASB will issue a report to present its findings and will issue a feedback statement which will set out the steps the IASB plans to take as a result of the review. Depending on the findings, the IASB might decide:
For more information on the RFI, please go to the IASB press release or speak to your usual KPMG contact.
© 2019 KPMG IFRG Limited is a UK company, limited by guarantee. All rights reserved. KPMG IFRG Limited, registered in England No 5253019. Registered office: 15 Canada Square, London, E14 5GL, UK.
KPMG International Cooperative (“KPMG International”) is a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm.