Document ID: chunk:federal_register_of_legislation:F2024C00046:body:0:p3
Version: federal_register_of_legislation:F2024C00046
Segment Type: other
Provision Reference: 
Character Range: 5820–8685

January 2024.  It incorporates relevant amendments contained in other AASB Standards made by the AASB up to and including 15 December 2022 (see Compilation Details).

Accounting Standard AASB 13

Fair Value Measurement

Objective
1 This Standard:
(a) defines fair value;
(b) sets out in a single Standard a framework for measuring fair value; and
(c) requires disclosures about fair value measurements.
2 Fair value is a market-based measurement, not an entity-specific measurement. For some assets and liabilities, observable market transactions or market information might be available. For other assets and liabilities, observable market transactions and market information might not be available. However, the objective of a fair value measurement in both cases is the same—to estimate the price at which an orderly transaction to sell the asset or to transfer the liability would take place between market participants at the measurement date under current market conditions (ie an exit price at the measurement date from the perspective of a market participant that holds the asset or owes the liability).
3 When a price for an identical asset or liability is not observable, an entity measures fair value using another valuation technique that maximises the use of relevant observable inputs and minimises the use of unobservable inputs. Because fair value is a market-based measurement, it is measured using the assumptions that market participants would use when pricing the asset or liability, including assumptions about risk. As a result, an entity's intention to hold an asset or to settle or otherwise fulfil a liability is not relevant when measuring fair value.
4 The definition of fair value focuses on assets and liabilities because they are a primary subject of accounting measurement. In addition, this Standard shall be applied to an entity's own equity instruments measured at fair value.

Scope
5 This Standard applies when another Standard requires or permits fair value measurements or disclosures about fair value measurements (and measurements, such as fair value less costs to sell, based on fair value or disclosures about those measurements), except as specified in paragraphs 6 and 7.
6 The measurement and disclosure requirements of this Standard do not apply to the following:
(a) share-based payment transactions within the scope of AASB 2 Share-based Payment;
(b) leasing transactions accounted for in accordance with AASB 16 Leases; and
(c) measurements that have some similarities to fair value but are not fair value, such as net realisable value in AASB 102 Inventories or value in use in AASB 136 Impairment of Assets.
7 The disclosures required by this Standard are not required for the following:
(a) plan assets measured at fair value in accordance with AASB 119 Employee Benefits;
(b) [deleted by the AASB]
(c) assets for