IFRS 13 - Measurement Uncertainty Analysis Disclosure for Fair Value Measurements Exposure Draft
- Completed
- Completed
- Rasmus Sommer
Description
In June 2010, the IASB re-exposed a limited number of proposals in relation to disclosures about fair value measurement in an Exposure Draft Measurement Uncertainty Analysis Disclosure for Fair Value Measurements (the ED).
Show more...
The ED clarified that the analysis should focus on unobservable inputs and that the effect of correlation should be considered where relevant.
EFRAG issued its comment letter on the ED in September 2010. The comment letter supported the proposed changes to the measurement uncertainty analysis disclosure. In particular, the comment letter:
- welcomed the clarification that the analysis was focussed on unobservable inputs and by implication provided information about measurement uncertainty as opposed to market risk;
- supported the rationale for changing the wording "reasonably possible alternative assumptions" and the convergence objective it achieved;
- agreed that correlation was an important factor in providing a meaningful analysis of measurement uncertainty where relevant; and
- agreed that correlation should only be considered in instances where its effect on the fair value measurement was significant.
The ED was issued as part of the IASB's Fair Value Measurement project, which was finalised in May 2011 with a publication of IFRS 13 Fair Value Measurement.
