ESMA, in its letter, thanked IASB for the opportunity to contribute to the IASB’s Post-Implementation Review of IFRS 13, the accounting standard for fair value measurement. In July 2017, ESMA had published a report on its review of fair value measurement in the IFRS financial statements. This was ESMA’s contribution to the Post-Implementation Review on IFRS 13 that the IASB is conducting. IASB had requested information on the Post-Implementation Review of IFRS 13 from ESMA.
Overall, the ESMA review shows that the requirements of IFRS 13 have been well-incorporated in the financial statements of the issuers in the sample. However, ESMA identifies selected areas in which it believes IASB could intervene to improve measurement and disclosure of fair value. ESMA recommends that IASB should expand the scope of the standard to require disclosures for non-recurring fair value measurements occurring at initial recognition, such as those related to IFRS 3 Business Combinations. ESMA also urges IASB to provide additional guidance and clarification related to the applicable adjustments when measuring the fair value of quoted investments.
Keywords: International, Europe, Securities, Accounting, IFRS 13, Fair Value Measurement, Post-Implementation Review, IASB, ESMA
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