ADMN 4303H Chapter Notes - Chapter 2: Fair Value, Ias 39, Equity Method
30 Mar 2020
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Ias 39 was introduced in 2005 where for the first time it was possible to report certain investments at fair value. In 2009, iasb introduced a new accounting standard for nonstrategic investments, ifrs 9. Ifrs 9 will be mandatorily effective for fiscal periods beginning on or after january 1, 2018. Ifrs 9 requires that all nonstrategic investments be reported at fair value, including investments in private companies. In ifrs 9, available-for-sale investments have been eliminated as a separate category of investments. In 2011, iasb introduced a new accounting standard, ifrs 13 fair value measurement. Ifrs 13 provides a single, unified definition of fair value and a framework for measuring it. Strategic investments are reported at values other than fair value: non-strategic investments are reported at fair value. Ifrs 9 deals with two types of equity investments: Fair value through profit and loss (fvtpl) investments. Include investment held for short-term trading and any other investments reporting entity wishes to designate as.
