P

C
This IFRS applies when another IFRS requires or permits FV measurements or disclosures about FV measurements
The measurement and disclosure requirements of this IFRS do not apply to the following:
a. share-based payment trans. within the scope of IFRS 2
b. leasing trans. accounted for in accordance with IFRS 16
c. measurements that have some similarities to FV but are not FV, such as NRV in IAS 2 or value in use in IAS 36
The disclosures required by this IFRS are not required for the following:
a. plan assets measured at FV in accordance with IAS 19
b. retirement benefit plan investments measured at FV in accordance with IAS 26
c. assets for which recoverable amt. is FV less costs of disposal in accordance with IAS 36
The FV measurement framework described in this IFRS applies to both initial and subsequent measurement if FV is required by other IFRSs

C
This IFRS defines FV as the price that would be received to sell an asset or paid to transfer a liab in an orderly trans. between market participants at
the measurement date

V
When measuring FV an entity shall take into account the characteristics of the asset or liab if market participants would take those characteristics
into account when pricing the asset or liab at the measurement date; such characteristics include:
a. the condition and location of the asset
b. restrictions, if any, on the sale or use of the asset
A FV measurement assumes that the asset or liab is exchanged in an orderly trans. between market participants to sell the asset or transfer the
liab at the measurement date under current market conditions
A FV measurement assumes that the trans. to sell the asset or transfer the liab takes place either:
a. in the principal market for the asset or liab
b. in the absence of a principal market, in the most advantageous market for the asset or liab
If there is a principal market for the asset or liab, the FV measurement shall represent the price in that market, even if the price in a different
market is potentially more advantageous at the measurement date
An entity shall measure the FV of an asset or a liab using the assumptions that market participants would use when pricing the asset or liab,
assuming that market participants act in their economic best interest
the entity shall identify characteristics that distinguish market participants generally, considering factors specific to all the following:
a. the asset or liab
b. the principal (or most advantageous) market for the asset or liab
c. market participants with whom the entity would enter into a trans. in that market
FV is the price that would be received to sell an asset or paid to transfer a liab in an orderly trans. in the principal market at the measurement date
under current market conditions regardless of whether that price is directly observable or estimated using another valuation technique
A FV measurement of a non-FA takes into account a market participants ability to generate economic benefits by using the asset in its highest and
best use or by selling it to another market participant that would use the asset in its highest and best use
The highest and best use of a non-FA takes into account the use of the asset that is physically possible, legally permissible and financially feasible,
as follows:
a. a use that is physically possible takes into account the physical characteristics of the asset that market participants would take into account
when pricing the asset
b. a use that is legally permissible takes into account any legal restrictions on the use of the asset that market participants would take into account
when pricing the asset
c. a use that is financially feasible takes into account whether a use of the asset that is physically possible and legally permissible generates
adequate income or cash flows (taking into account the costs of converting the asset to that use) to produce an investment return that market
participants would require from an investment in that asset put to that use
The highest and best use of a non-FA establishes the valuation premise used to measure the FV of the asset, as follows:
a. the highest and best use of a non-FA might provide maximum value to market participants through its use in combination with other assets as a
group (as installed or otherwise configured for use) or in combination with other A&L
i. if the highest and best use of the asset is to use the asset in combination with other assets or with other A&L, the FV of the asset is the
price that would be received in a current trans. to sell the asset assuming that the asset would be used with other A/L and they would be
available to market participants
ii. liab associated with the asset and with the complementary assets include liab that fund working capital, but do not include liab used to
fund assets other than those within the group of assets
 iii. assumptions about the highest and best use of a non-FA shall be consistent for all the assets (for which highest and best use is relevant) of
the group of assets or the group of A&L within which the asset would be used
b. the highest and best use of a non-FA might provide maximum value to market participants on a stand-alone basis
The FV measurement of a non-FA assumes that the asset is sold consistently with the unit of account specified in other IFRSs
A FV measurement assumes that a financial or non-FL or an entitys own equity inst. is transferred to a market participant at the measurement
date; the transfer of a liab or equity inst. assumes the following:
a. a liab would remain outstanding and the market participant transferee would be required to fulfil the obligation. the liab would not be settled
with the counterparty or otherwise extinguished on the measurement date
b. an entitys own equity inst. would remain outstanding and the market participant transferee would take on the rights and responsibilities
associated with the inst.; the inst. would not be cancelled or otherwise extinguished on the measurement date
When a quoted price for the transfer of an identical or a similar liab or equity inst. is not available and the identical item is held by another party as
an asset, an entity shall measure the FV of the liab or equity inst. from the perspective of a market participant that holds the identical item as an
asset at the measurement date; in such cases, an entity shall measure the FV of the liab or equity inst. as follows:
a. using the quoted price in an active market for the identical item held by another party as an asset, if that price is available.
b. if that price is not available, using other observable inputs, such as the quoted price in a market that is not active for the identical item held by
another party as an asset
c. if the observable prices in (a) and (b) are not available, using another valuation technique, such as:
i. an income approach
ii. a market approach
An entity shall adjust the quoted price of a liab or an equity inst. held by another party as an asset only if there are factors specific to the asset that
are not applicable to the FV measurement; some factors are:
a. The quoted price for the asset relates to a similar (but not identical) liab or equity inst. held by another party as an asset
b. The unit of account for the asset is not the same as for the liab or equity inst.
When a quoted price for the transfer of an identical or a similar liab or entitys own equity inst. is not available and the identical item is not held by
another party as an asset, an entity shall measure the FV of the liab or equity inst. using a valuation technique from the perspective of a market
participant that owes the liab or has issued the claim on equity
The FV of a liab reflects the effect of non-performance risk; non-performance risk is assumed to be the same before and after transfer of the liab
When measuring the FV of a liab or an entitys own equity inst., an entity shall not include a separate input or an adjustment to other inputs
relating to the existence of a restriction that prevents the transfer of the item
The FV of a FL with a demand feature is not less than the amt. pay. on demand, discounted from the date that the amt. could be reqd to be paid
If the entity manages that group of FA and FL on the basis of its net exposure to either market risks or credit risk, the entity is permitted to apply
an exception to this IFRS for measuring FV; an entity is permitted to use the exception only if the entity does all the following:
a. manages the group of FA and FL on the basis of the entitys net exposure to a particular market risk(s) or to the credit risk of a particular
counterparty in accordance with the entitys documented risk management or investment strategy
b. provides information on that basis about the group of FA and FL to the entitys key management personnel
c. is required or has elected to measure those FA and FL at FV in the statement of financial position at the end of each reporting period
the exception applies only to FA, FL and other contracts w/in the scope of IFRS 9
when using the exception to measure the FV of a group of FA and FL managed on the basis of the entitys net exposure to a particular market
risk(s), the entity shall apply the price within the bid-ask spread that is most representative of FV in the circumstances to the entitys net
exposure to those market risks
when using the exception, an entity shall ensure that the market risk (or risks) to which the entity is exposed within that group of FA and FL is
substantially the same
when using the exception to measure the FV of a group of FA and FL entered into with a particular counterparty, the entity shall include the
effect of the entitys net exposure to the credit risk of that counterparty or the their net exposure to the credit risk of the entity in the FV
measurement when market participants would take into acct. existing arrangements that mitigate credit risk exposure in the event of default
When an asset is acquired or a liab is assumed in an exchange trans. for that asset or liab, the trans. price is the price paid to acquire the asset or
received to assume the liab (an entry price)
the FV of the asset or liab is the price that would be received to sell the asset or paid to transfer the liab (an exit price)
An entity shall use valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure FV,
maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs
if multiple valuation techniques are used to measure FV, the shall be evaluated considering the reasonableness of the range of values indicated
by those results
if the trans. price is FV at initial recognition and a valuation technique that uses unobservable inputs will be used to measure FV in subsequent
periods, the valuation technique shall be calibrated so that at initial recognition the result of the valuation technique equals the trans. price
Valuation techniques used to measure FV shall maximize the use of relevant observable inputs and minimize the use of unobservable inputs
an entity shall select inputs that are consistent with the characteristics of the asset or liab that market participants would take into account in a
trans. for the asset or liab
a FV measurement shall not incorporate a premium or discount that is inconsistent with the unit of account in the IFRS that requires or permits
the FV measurement
If an asset or a liab measured at FV has a bid price and an ask price, the price within the bid-ask spread that is most representative of FV in the
circumstances shall be used to measure FV regardless of where the input is categorized within the FV hierarchy
 To increase consistency and comparability in FV measurements and related disclosures, this IFRS establishes a FV hierarchy that categorizes into
three levels the inputs to valuation techniques used to measure FV
a. Level 1 inputs
quoted prices (unadjusted) in active markets for identical assets or liab that the entity can access at the measurement date
a quoted price in an active market provides the most reliable evidence of FV and shall be used without adjustment to measure FV
the emphasis within Level 1 is on determining both of the following:
i. the principal market for the asset or liab or, in the absence of a principal market, the most advantageous market for the asset or liab
ii. whether the entity can enter into a trans. for the asset or liab at the price in that market at the measurement date
b. Level 2 inputs
inputs other than quoted prices included within level 1 that are observable for the asset or liab, either directly or indirectly
if the asset or liab has a specified (contractual) term, a level 2 input must be observable for substantially the full term of the asset or liab.
they include the following:
i. quoted prices for similar assets or liab in active markets.
ii. quoted prices for identical or similar assets or liab in markets that are not active.
iii. inputs other than quoted prices that are observable for the asset or liab, for example:
1. interest rates and yield curves observable at commonly quoted intervals
2. implied volatilities
3. credit spreads
iv. market-corroborated inputs
c. Level 3 inputs
unobservable inputs for the asset or liab
they shall be used to measure FV to the extent that relevant observable inputs are not available, thereby allowing for situations in which
there is little, if any, market activity for the asset or liab at the measurement date