Fairvaluemeasurement文件材料.ppt

Chapter 5 Fair value measurement Prepared by Emma Holmes;In September 2011 AASB 13 Fair Value Measurement was issued AASB 13 is a new standard which provides a consistent definition of fair value to be applied across all other accounting standards. Prior to the introduction of AASB 13 different standards had their own definition of fair value. The main objectives of AASB 13 are: To define fair value To establish a framework for measuring fair value To require disclosures about fair value measurement;Transaction and transport costs Transactions costs are incremental direct costs that would not have been incurred had the decisions to sell the asset/transfer the liability not been made. Transport costs are the costs incurred to transport an asset from its current location to its principal market. Both affect the determination of fair value eg transaction costs are relevant in determining the most advantageous market. (Refer example 5.1 of text) HOWEVER, the price used to measure FV is NOT adjusted for these costs.;AASB 13 applies to: Non-financial assets; and Liabilities and equity. Four step process in making a FV measurement: Determine the asset or liability that is the subject of the measurement. Determine the valuation premise that is appropriate.** Determine the principal or most advantageous market. Determine the appropriate valuation technique. ** Relevant for non-financial assets only Each step is discussed on the following slides.;This step involves considering characteristics that market participants would take into account when pricing an asset or liability. Relevant questions to consider include: What is the location of the asset? What is the condition of the asset? Are there any restrictions on sale or use of the asset? Is the asset or liability a stand-alone asset or it is a group of assets?;Fair value is measured by considering the highest and best use of an asset. “...the use of a non-financial asset by market participants that would maximise the v