NZ IFRS13 Fair Value Measurement: A long time coming

NZ IFRS13 Fair Value Measurement

No cause for alarm - but care still needed. This issue of Fair Value Insights shares insights on topical issues and the challenges encountered as we help our clients navigate fair value reporting requirements.

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Wooden foot path with green grass

In this issue, we focus on NZ IFRS 13 Fair Value Measurement. This year we have seen the first tranche of preparers grapple with the practical interpretation of the new standard.

Fair Value Insights takes a closer look at three core concepts that we are encountering repeatedly in our discussions with clients – Unit of Account, Highest & Best Use and Credit Valuation Adjustments – and the challenges they present. More importantly, it offers some practical solutions for implementation.

Learn about:

  • How Unit of Account is critical to fair value measurement but may not align with commercial considerations
  • A potential increase in impairment risk as a result of the impact of pending IASB Guidance
  • How Highest & Best Use is viewed from a market participant standpoint
  • Credit/Debit Valuation Adjustments – how reporting entities are now required to explicitly consider the impact of both their own credit risk and counterparty credit risk when assessing the fair value of derivative financial assets and liabilities.

© 2017 KPMG, a New Zealand partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (KPMG International), a Swiss entity. All rights reserved.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

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