www.apv.net avid Edgerton FCPA irector Quality + Expertise + Flexibility + Innovation Confidence & Real Value Implications of the new “Fair Value” Standard
Implications of the new “Fair Value” Standard
Jan 18, 2016
Implications of the new “Fair Value” Standard. Guide to Valuation & Depreciation for the Public Sector. Standards. Decision Trees available from www.apv.net www.fairvaluepro.com.au. Issued late 2011 Applies for 1 Jan 2013 onwards Fair Value consistency across all standards - PowerPoint PPT Presentation
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www.apv.net
David Edgerton FCPADirector
Quality + Expertise +Flexibility + Innovation =Confidence & Real Value
Implications of the new “Fair Value” Standard
www.apv.net
David Edgerton FCPADirector
Quality + Expertise +Flexibility + Innovation =Confidence & Real Value
Guide to Valuation & Depreciation for the
Public Sector
www.apv.net
Standards
Decision Trees available from
www.apv.netwww.fairvaluepro.com.au
www.apv.net
IFRS13/AASB13 “Fair Value”
• Issued late 2011• Applies for 1 Jan 2013 onwards• Fair Value consistency across all standards• New Definition …. “exit” price• New concepts• New complex disclosures
www.apv.net
Fair Value Definition
Will be: “the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.”
Was: “the amount for which an asset could be exchanged between knowledgeable, willing parties in an arm's length transaction.”
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Residual Value Definition
Will be: “the amount an entity could receive for the asset currently (at the financial reporting date) if the asset were already as old and worn as it will be when the entity expects to dispose of it.”
Was: “is the estimated amount that an entity would currently obtain from disposal of the asset, after deducting the estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.”
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New Concepts
• Hierarchy of Valuation Input– Level 1 (Quoted Price)– Level 2 (Observable Market Evidence)– Level 3 (Non-observable market evidence)
• Recurring v Non-Recurring Valuations
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New Disclosure
• Dependent upon whether– Recurring or Non-Recurring valuation– Level of Valuation Input
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David Edgerton FCPADirector
Quality + Expertise +Flexibility + Innovation =Confidence & Real Value
www.apv.net
www.apv.net
www.apv.net
Draft CPA Guide, Tools & Help
APV website (www.apv.net)
Fair Value Pro websites (www.fairvaluepro.com.au)
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