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ESMA reports on its review of the application of IFRS 13 – fair value measurement requirements

The European Securities Markets Authority (‘ESMA’) has today published its Report providing an overview of the implementation of IFRS 13 Fair Value Measurement by European issuers. The Report assesses the level of compliance of IFRS financial statements with the requirements in IFRS 13 and the comparability amongst issuers.

 

The requirements of IFRS 13 have, in general, been well incorporated by the issuers in the sample. ESMA, however, believes that room for further improvement exists in areas such as:

 

(a) disclosures on fair value; and

 

(b) the assessment when transaction or quoted prices do not represent fair value.

 

ESMA expects issuers and their auditors to consider the findings of this review when preparing and auditing financial statements.

 

ESMA intends to submit the Report to the International Accounting Standards Board which is currently conducting a Post Implementation Review on IFRS 13.

 

IAASA was represented on the ESMA Task Force charged with drafting this Report. A number of Irish issuers were included in the sample selected for review.

 

The ESMA Report may be accessed here.