IFRS for SMEs / Third edition changes / Section 12 in the third edition: the new fair value section
Section 12 in the third edition: the new fair value section
Section 12 is now a single section on fair value measurement. It applies whenever another section requires or permits fair value, for example investment property or revalued property, plant and equipment.
What changes
- Section 12 A single definition of fair value as an exit price between market participants, with valuation techniques and a hierarchy of inputs.
- 12.28 Disclose the valuation technique, the inputs and their level in the hierarchy for items measured at fair value.
What to prepare
- If the company revalues property or holds investments at fair value, ask the valuer to state the technique and inputs in the valuation report.
How Sight handles it
On the third edition, a revaluation reserve in the ledger adds a fair value note with the facts the accountant must complete.
Section 12: Fair Value Measurement: the section in full.
Other third-edition changes
- Section 2 in the third edition: concepts and pervasive principles
- Section 3 in the third edition: material accounting policy information
- Section 4 in the third edition: disaggregating line items
- Section 6 in the third edition: dividends declared after year end
- Section 7 in the third edition: financing liabilities and supplier finance
- Section 8 in the third edition: material policies and judgements
- Section 11 in the third edition: one section for financial instruments, ageing and maturity
- Section 19 in the third edition: business combinations
- Section 23 in the third edition: the five-step revenue model
- Section 29 in the third edition: uncertain tax treatments
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