Under IFRS, fair value is one of the vital measurement basis for the measurement or disclosure of few assets and liabilities. Some of the IFRSs contained limited guidance about how to measure fair value, whereas others contained extensive guidance and that guidance was not always consistent and sometimes ambiguous. Inconsistencies in the requirements for measuring fair value and for disclosing information about fair value measurements have contributed to diversity in practice and have reduced the comparability. This resulted in the issue of IFRS 13 – Fair value measurements, providing single source of guidance on all fair value measurement, clarity in definition, reducing earlier ambiguity and enhancing disclosures etc. IFRS 13  provides framework for measuring fair value, enhancing consistency and comparability in financial reporting. In this blog we’ll discuss, evaluate the definition of fair value and its key aspects and determine how to apply the same in arriving at the ...