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ACCA Strategic Professional · Strategic Business Reporting (International) · Fair value measurement

Which of the following items is within the scope of IFRS 13 so that its fair value measurement requirements apply?

Investment property carried at fair value under IAS 40 is within IFRS 13's scope. The standard applies when another IFRS requires or permits fair value, but excludes IFRS 2 share-based payments, IFRS 16 leases and measures such as net realisable value that only resemble fair value.

  1. AShare-based payment transactions accounted for under IFRS 2
  2. BLease transactions accounted for under IFRS 16
  3. CInvestment property measured at fair value under IAS 40Correct
  4. DNet realisable value of inventories under IAS 2

Explanation

IFRS 13 applies where another standard requires or permits fair value measurement, such as IAS 40 fair value model investment property. Share-based payments under IFRS 2 and leases under IFRS 16 are scope exclusions. Net realisable value under IAS 2 is not fair value, so it is also outside the scope.

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