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Desk top survey on the application of IFRS 13 Fair Value Measurement by Irish issuers

IAASA, Ireland’s accounting enforcer, has today published the results of a desk top survey it has undertaken into the application of IFRS 13 Fair Value Measurement by Irish issuers. The survey covered the 2015/16 financial statements of twenty-eight entities listed on the Stock Exchange.

The document is available here.


Financial reporting standards mandate or permit the use of fair value measurements in a large number of instances. IFRS 13 defines “fair value”, sets out the rules for measuring fair values and specifies the fair value disclosures to be provided in financial statements.

Survey results

The amount of intangible assets (excluding goodwill) acquired by issuers during fiscal 2015 was almost €1.4bn. Intangible assets are identifiable non-monetary assets without physical substances such as customer relationships, software, licences, brands and trade names. The recognition, measurement and disclosures associated with intangible assets is important given the variety and amount of such assets in issuers’ financial statements.

The survey also provides commentary in relation to the fair values of financial assets and financial liabilities.

Key messages

The key messages for preparers, directors and Audit Committee members from the survey are that, in applying fair value judgements, IAASA encourages them to:

  1. provide more entity-specific disclosure that informs users of the measurement bases used in the fair value measurement of intangible assets;

  1. provide clearer disclosure of the key fair value judgements and assumptions that management has made and that have the most significant effect on the amounts of intangible assets recognised in the financial statements;

  1. provide more disclosure as to how material liabilities are fair valued; and

  1. provide fair value disclosures by class of assets and liabilities where appropriate.

In applying fair value judgements to financial assets and financial liabilities, IAASA encourages preparers, directors and Audit Committees to:

  1. provide improved disclosure of collateral pledged and held; and

  1. for Level 3 prices, provide improved disclose as to whether or not reasonably possible alternative assumptions would change fair value significantly.