Fair Value

International Financial Reporting Standards (IFRS) 13, Fair Value Measurement, applies when another IFRS requires or permits the use of fair value measurements or disclosures about fair value measurements. Based on the market value concept and the associated sale price, IFRS 13 focuses on the transaction approach when measuring the fair value of liabilities. The fair value is to be measured by reference to the principal market, or in the absence of a principal market, the most advantageous market. Fair value is based on the presumption of an orderly transaction between market participants at measurement date under current market conditions. From the perspective of a market participant, fair value holds the asset or owes the liability, in other words it is an exit price. The asset or liability measured at fair value might be either a standalone asset or liability or a group of assets, a group of liabilities or a group of assets and liabilities.