IFRS 13 and its application is well known by accounting specialists who prepare international financial statements. The purpose is to measure an asset at its fair value. In accordance with IFRS 13, there are three measurement levels in a measurement hierarchy for this purpose. And it is precisely these measurement levels that must be viewed extremely critically in their presentation and application. This paper presents the practicability of IFRS 13 in detail and attempts to critically examine this and the application of IFRS 13.
Inhaltsverzeichnis (Table of Contents)
- Introduction and problem definition
- Theoretical principles on the topic of fair value
- The development of the fair value concept.
- Structure and Overview of IFRS 13.
- Key objectives and areas of application
- Definition: Fair Value
- Possible applications of the fair value approach
- Application to non-financial assets.
- Application to liabilities and equity instruments of an enterprise
- Application to financial assets and financial liabilities offsetting positions with respect to market or counterparty risks
- Fair-Value-Measurement / IFRS 13-Performance.
- The Fair Value Hierarchy.
- Closer examination and presentation of the measurement hierarchy.
- Fair value measurement methods.
- The Approach to Fair Value Measurement.
- Valuation assumption for non-financial assets
- Fair value on first-time recognition
- Market Approach (market approach method / market price oriented method)
- Income approach (income approach / capital/yield-oriented)
- Detailed description and analysis of the income-based approach
- Cost Approach (cost approach / cost-oriented procedure).
- Critical analysis of fair value measurement.
- Critical analysis in determining fair value in general.
- Criticism about the presentation of the reference market and market participants.
- Criticism of the topic of the valuation hierarchy and its valuation procedures
- Critical analysis of the problem of determining fair value based on discretionary powers and complexity
- Effects of the use of discretionary powers in the application of IFRS 13.
- Critical analysis in determining fair value in general.
- Theses summary of the results and outlook.
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
The objective of this work is to present a comprehensive and practical understanding of IFRS 13, the international accounting standard for fair value measurement. The text critically examines the interpretation and application of IFRS 13, highlighting its key features, challenges, and implications for financial reporting.
- The evolution and definition of fair value in accounting.
- The structure, objectives, and scope of application of IFRS 13.
- The fair value hierarchy and measurement methods under IFRS 13.
- Critical analysis of fair value measurement, including its limitations and potential for subjectivity.
- The impact of discretionary powers and complexity in the application of IFRS 13.
Zusammenfassung der Kapitel (Chapter Summaries)
The initial chapters provide an introduction and background on IFRS 13, outlining its development, key objectives, and definition of fair value. The text then delves into the structure and scope of IFRS 13, examining its application to various assets, liabilities, and financial instruments.
Subsequent chapters focus on the fair value hierarchy and measurement methods, exploring different approaches to determining fair value, including the market approach, income approach, and cost approach. The text also delves into the valuation assumptions and procedures involved in fair value measurement.
The concluding chapters critically analyze fair value measurement, highlighting potential challenges, limitations, and areas of subjectivity. The text discusses the impact of discretionary powers and complexity in the application of IFRS 13, examining its implications for financial reporting.
Schlüsselwörter (Keywords)
The text focuses on IFRS 13, fair value measurement, fair value hierarchy, valuation methods, critical analysis, discretionary powers, and financial reporting. It examines the application of IFRS 13 to various assets, liabilities, and financial instruments, exploring the challenges and complexities involved in fair value measurement.
- Arbeit zitieren
- PhD Maged Hassanien (Autor:in), 2019, A critical examination of the interpretation and application of IFRS 13, München, GRIN Verlag, https://www.grin.com/document/496625
