EFRAG completed its due process regarding IFRS 13 Fair Value Measurement (as issued by the IASB in May 2011), and submitted its Endorsement Advice Letter and Effects Study Report to the European Commission.
The objective of IFRS 13 sets out a single IFRS framework for measuring fair value and provides comprehensive guidance on how to measure the fair value of both financial and non-financial assets and liabilities. IFRS 13 applies when another IFRS requires or permits fair value measurement or disclosures about fair value measurements, but it does not set out requirements on “when to” apply fair value measurement.
IFRS 13 becomes effective for annual periods beginning on or after 1 January 2013. Earlier application is permitted, however entities shall disclose that fact.
IFRS 13 includes consequential amendments to IFRS 9 Financial Instruments, which has not yet been endorsed in the EU. Therefore, those consequential amendments are not addressed in this endorsement advice and will be considered together with the related requirements in IFRS 9.
EFRAG has carried out an evaluation of IFRS 13. As part of that process, EFRAG issued its initial assessment for public comment and, when finalising its advice and the content of this letter, it took the comments received in response into account. EFRAG's evaluation is based on input from standard-setters, market participants and other interested parties, and its discussions of technical matters are open to the public.
EFRAG supports IFRS 13 and has concluded that it meets the requirements of the Regulation (EC) No 1606/2002 of the European Parliament and of the Council on the application of international accounting standards.
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