Skip to content (Press enter)

IFRS 13 Fair Value Measurement

Standard 2024 Issued
Show Sections


IFRS 13 defines fair value, sets out a framework for measuring fair value, and requires disclosures about fair value measurements.

It applies when another Standard requires or permits fair value measurements or disclosures about fair value measurements (and measurements based on fair value, such as fair value less costs to sell), except in specified circumstances in which other Standards govern. For example, IFRS 13 does not specify the measurement and disclosure requirements for share-based payment transactions, leases or impairment of assets. Nor does it establish disclosure requirements for fair values related to employee benefits and retirement plans.

IFRS 13 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 (an exit price). When measuring fair value, an entity uses the assumptions that market participants would use when pricing the asset or the liability under current market conditions, 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.

Standard history

In May 2011 the International Accounting Standards Board issued IFRS 13 Fair Value Measurement. IFRS 13 defines fair value and replaces the requirement contained in individual Standards.

Other Standards have made minor consequential amendments to IFRS 13. They include IAS 19 Employee Benefits (issued June 2011), Annual Improvements to IFRSs 2011–2013 Cycle (issued December 2013), IFRS 9 Financial Instruments (issued July 2014) and IFRS 16 Leases (issued January 2016).