Home  Journals  International Accounting  28(322) - 2014 July

Developing fair value measurement in light of IFRS 13 application

Available online: 17 July 2014

Subject Heading: On the way to international standards

JEL Classification: 

Pages: 2-6

The current phase of accounting development in the Russian Federation suggests a gradual transition to International Financial Reporting Standards (IFRS), which are based on the methodology of measuring accounting items at fair value. The purpose of the publication is to consider the theoretical principles of developing the measurement of accounting items at fair value in light of IFRS 13 "Fair Value Measurement" adoption. To achieve this goal it is necessary to solve the following problems: to explore the definition of "fair value" term and identify its place in the international systems regulating accounting; to specify the scope of IFRS 13 application in today's environment; to present and describe the main levels in the fair value hierarchy. The object of the study is economic entities, which maintain accounting under International Financial Reporting Standards. The subject of the study is IFRS 13 "Fair Value Measurement". The reliability of the conclusions made by the authors of the publication is supported by logical use of general scientific and special methods of the study. The article describes the stages of developing fair value measurement as part of the International Financial Reporting Standards. The authors raise and analyze urgent issues related to measuring fair value within the framework of IFRS 13 "Fair Value Measurement" application, and provide their description and comments on the fair value hierarchy. The main conclusions obtained in the course of writing this article may act as a methodical basis for scientific research aimed at accounting science development in the context of transition to International Financial Reporting Standards. The result of this work is the identification of "fair value" concept. The authors also present and describe the main levels of fair value hierarchy, and identify the scope of IFRS 13 "Fair Value Measurement" application in modern conditions of legislation development.

Keywords: International Financial Reporting Standards, fair value, measurement, hierarchy

References:

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2. Ilysheva N.N., Neverova O.S. Spravedlivaya stoimost' kak metod otsenki: nastoyashchee i budushchee [Fair value as a method of evaluation: the present and future]. Mezhdunarodnyi bukhgalterskii uchet – International accounting, 2010, no. 7, pp. 48–53.
3. Order of the RF Ministry of Finance “On Introduction of International Financial Reporting Standards and interpretations of international accounting standards in the Russian Federation” of November 25, 2011 № 160n.
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5. Rozhnova O.V. Aktual'nye voprosy otsenki po spravedlivoi stoimosti aktivov i obyazatel'stv [Topical issues of measuring assets and liabilities at fair value]. Mezhdunarodnyi bukhgalterskii uchet – International accounting, 2013, no. 23, pp. 2–8.

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