IASB released its latest exposure draft, Disclosure Requirements in IFRS Standards—A Pilot Approach, in late March, and business valuers are just beginning to examine the key elements. Comments are required prior to 21 October. The exposure draft proposes a new approach to developing disclosure requirements in IFRS standards. BVWire—UK readers may wish to submit comments on behalf of their firms.

Obviously, changing the approach to forming new standards primarily affects the auditors, but they also suggest new potential disclosure standards for business valuers who do financial reporting projects under IFRS 13 Fair Value Measurement. Even the standard’s illustrative examples will change if the draft is accepted, to “require quantitative disclosures about the fair value measurements of each class of assets and liabilities measured at fair value in the statement of financial position after initial recognition by the level of the fair value hierarchy” (italics indicate new language from the exposure draft).

The nature of these quantitative disclosures is defined in new Paragraphs 100 to 121 in the proposed update to IFRS 13:

An entity shall disclose information that enables users of financial statements to evaluate the entity’s exposure to uncertainties associated with fair value measurements of classes of assets and liabilities measured at fair value in the statement of financial position after initial recognition.

Thanks to Marianne Tissier and Chris Thorne for their ongoing coverage of this new IFRS initiative via Valuology.org.