Document ID: chunk:federal_register_of_legislation:F2024C00046:body:0:p4
Version: federal_register_of_legislation:F2024C00046
Segment Type: other
Provision Reference: 
Character Range: 8448–11210

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 which recoverable amount is fair value less costs of disposal in accordance with AASB 136.
8 The fair value measurement framework described in this Standard applies to both initial and subsequent measurement if fair value is required or permitted by other Australian Accounting Standards.

Measurement

Definition of fair value
9 This Standard defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
10 Paragraph B2 describes the overall fair value measurement approach.

The asset or liability
11 A fair value measurement is for a particular asset or liability. Therefore, when measuring fair value an entity shall take into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Such characteristics include, for example, the following:
(a) the condition and location of the asset; and
(b) restrictions, if any, on the sale or use of the asset.
12 The effect on the measurement arising from a particular characteristic will differ depending on how that characteristic would be taken into account by market participants.
13 The asset or liability measured at fair value might be either of the following:
(a) a stand-alone asset or liability (eg a financial instrument or a non-financial asset); or
(b) a group of assets, a group of liabilities or a group of assets and liabilities (eg a cash-generating unit or a business).
14 Whether the asset or liability is a stand-alone asset or liability, a group of assets, a group of liabilities or a group of assets and liabilities for recognition or disclosure purposes depends on its unit of account. The unit of account for the asset or liability shall be determined in accordance with the Standard that requires or permits the fair value measurement, except as provided in this Standard.

The transaction
15 A fair value measurement assumes that the asset or liability is exchanged in an orderly transaction between market participants to sell the asset or transfer the liability at the measurement date under current market conditions.
16 A fair value measurement assumes that the transaction to sell the asset or transfer the liability takes place either:
(a) in the principal market for the asset or liability; or
(b) in the absence of a principal market, in the most advantageous market for the asset or liability.
17