IFRS 13: Feedback, Guidance, And The Way Forward

The measurement of fair value, along with any related disclosures, is an important area of focus for accountants, regulators, investors, and shareholders. In order to streamline fair value measurement and disclosure requirements, the International Accounting Standards Board (IASB) developed IFRS 13, which became effective in 2013. However, the quality of fair value disclosures on the financial statements of banking, non-banking, commercial, and service companies is still hotly debated. Several regulators (including the European Securities and Markets Authority [ESMA]) have identified numerous shortcomings, commenting on the adequacy, appropriateness, comparability, and specificity of disclosures provided by various entities. The IASB itself has also conducted an implementation review, with the following notable findings: