IFRS 12 & 13
Welcome
1
IFRS 12
Sabrinnshar Shapla
ID: ACCT 20020
Disclosure
Disclosure of financial statement for
joint arrangement and joint venture
Disclosure of financial statement for
associates
7/15/2026
PRESENTATION TITLE
12
Interests in joint ventures and
associates
Risks associated with an entity’s, Interests in joint ventures and associates
 Commitments relating to joint ventures.
 Contingent liabilities incurred relating to joint ventures or
associates (including its share of contingent liabilities incurred
jointly with other investors), unless the probability of loss is
remote.
7/15/2026
PRESENTATION TITLE
13
Interests in joint arrangements and
associates
The name of the joint arrangement or
associates
The nature of the entity’s relationship
with the joint arrangement or associate
The principal place of business of the
joint venture arrangement
The proportion of ownership interest or participating share held by the entity
and, if different, the proportion of voting ( if applicable)
If measured using equity method: the fair value of its investment in the joint
venture or associate (if a quoted market price is available
7/15/2026
PRESENTATION TITLE
14
IFRS 12
MEJBA BIN MOSTOFA
ID: ACCT 20021
Significant Judgements and
Assumptions
An entity discloses information about significant judgements and
assumptions it has made in determining: [IFRS 12:7]
That it controls another entity
That it has joint control of an arrangement or significant influence
over
another entity
The type of joint arrangement (i.e. joint operation or joint venture)
when the arrangement has been structured through a separate
vehicle.
Significant Judgements and Assumptions
The significant judgements and assumptions disclosed in
accordance with paragraph 7 include those made by the
entity when changes in facts and situation are such that the
conclusion about whether it has control, joint control or
significant influence changes during the reporting period.
[IFRS 12:8]
Significant Judgements and
Assumptions
To comply with paragraph 7, an entity shall disclose, for example, significant judgements and
assumptions made in determining that
(a) It does not control another entity even though it holds more than half of the voting
rights of the other entity.
(b) It controls another entity even though it holds less than half of the voting rights of the
other entity.
(c) It is an agent or a principal (see paragraphs 58–72 of IFRS 10).
(d) It does not have significant influence even though it holds 20 per cent or more of the
voting rights of another entity.
(e) It has significant influence even though it holds less than 20 per cent of the voting
rights of another entity.
[IFRS 12:8]
IFRS 13
FAIR VALUE
MEASUREMENT
Fair Value
IFRS 13 Fair Value Measurement applies to IFRSs
that require or permit fair value measurements or
disclosures and provides a single IFRS framework
for measuring fair value and requires disclosures
about fair value measurement. The Standard
defines fair value on the basis of an 'exit price'
notion and uses a 'fair value hierarchy', which
results in a market-based, rather than entityspecific, measurement
Scop and
Framework- IFRS 13
AHASANUL ALAM RAHAT
ID: ACCT 20022
Scope
It is the area where the certain terms and conditions are applicable
Applicable
1.Financial Assets
2. Liabilities and Equity
3. Non-financial assets
Exemption
1. IFRS 2- Share based
payment
2. IFRS 16- Leases
3. IAS 2 & 36- inventories &
Impairment of assets
Non Applicable
1. IAS 19- Employee
benefits
2. IAS 26- Retirement
benefits plan
THE IFRS FRAMEWORK 13
A FRAMEWORK IS AN ORGANIZED STRUCTURE ILLUSTRATING THE RAODMAP OF
OPERATION.
04
Application to the SCOPE
Market Participants
03
The Transaction & Place
02
Features of Assets & Liabilities
01
Features of Assets & Liabilities
THE ASSETS FEATURES
Conditions
Restrictions
Market Status
The physical and financial
situation, & Quality.
Prohibition & limitation
Liquidity &
worthiness
When measuring fair value, IFRS 13 requires entities to consider the characteristics of the
asset or liability being measured that a market participant would take into account when
pricing the asset or liability at measurement date.
24
The Liabilities
IFRS 13
Feature
01
Obligations of performing
IFRS 13 defines a liability as a present obligation of the entity to
transfer an economic resource to another entity as a result of past
events.
Feature
02
Creditworthiness and Market
conditions of Rating and Liquidity
Feature
03
Risk Associates of Non-performing,
Credit & Market
Transaction & Place
Principle Market
The principal market is the
market with the greatest
volume and level of activity for
a particular asset or liability. It is
the market in which the entity
would normally sell the asset or
transfer the liability.
Most Advantageous Market
The most advantageous market is the market
in which an entity could sell an asset or
transfer a liability at the highest price that is
available to the entity, after taking into
account transaction costs and transportation
costs.
A fair value measurement assumes that the asset or liability is exchanged in an orderly transaction
between market participants to sell the asset or transfer the liability at the measurement date under
current market conditions. A fair value measurement assumes that the transaction to sell the asset or
transfer the liability takes place either:1
26
Market Participents
The market is controlled by the standard and played by the influencer
Optimus Prime
Market participants in IFRS 13 are defined as entities that
would enter into a transaction to buy or sell the asset or liability
being measured at fair value. They are assumed to be
independent, knowledgeable, willing, and able to enter into the
transaction at the measurement date under current market
conditions.
Measurement of NFA
The measurement of fair value of non-financial assets are measured on
the basis of highest and best uses of the assets. The term highest and
best use implies to maximize the benefits of the assets whether in single
Perspective
01.
use or multiple use. The measurement of non-financial assets are
Market participant
judgement are the key
factor of measuring assets
complex as it is not under contractual terms. So, there are a premise in
valuation of non-financial assets
02.
Complementary
assets
To maximize highest and best
use it is seemed that the MP”s
holds complementary assets to
maximize.
Stand-alone basis
What NFA is…
A non-financial asset refers to an asset that is not traded on
the financial markets, and its value is derived from its
physical characteristics rather than from contractual claims.
assets ,if on it’s own
03. An
then the valuation starts
from the root.
Measurement of
liabilities and
equity
What is it?
Observation 1
A fair value measurement assumes that a financial or non-financial
liability or an entity’s own equity instrument is transferred to a market
participant at the measurement date.
Observation 2
Liability or equity remains outstandings. Restrictions on transfer are
already reflected in inputs; no additional adjustment required. Fair value
of a liability reflects the effect of non-performance risk
Observation 3
Measurement of
liabilities and
equity
Is there any observable
market?
Observation
1
If Yes
Fair value = observable market price of the instruments
Observation 2
If NO
Does somebody hold that assets in the market?
Observation 3
Measurement of
liabilities and
equity
Is there any observable
market?
Observation 1
If no.
Fair value = other valuation technique
Observation
2
Observation 3
If yes.
Fair value = fair value of the corresponding assets
Measurement of
liabilities and
equity
Is there any observable
market?
Observation 1
If Yes
Fair value = observable market price of the instruments
Observation 2
If NO
Fair value = other valuation technique
Observation
3
METHODOLOGIES OF
FAIR VALUE
MEASUREMENT &
Disclosure
Md. Sagar Ahmed
ID: ACCT 20023
Approaches to Fair Value
Measurement
Market Approach
Cost Approach
Income Approach
34
Input for fair value measurement
Fair Value
Hierarchy
Level 1
Identical
Quoted Price Unadjusted
Level 2
Similar
Quoted Price Adjusted
Level 3
Unobservable
Asset or Liability
MAXIMIZE LEVEL 1 & 2 INPUTS AND MINIMIZE LEVEL 3 INPUTS
35
Disclosure
Disclosure are based on whether the fair value
measurement are recurring or non-recurring.
Recurring: A recurring expense occurs on a regular
basis.
IFRS13 permits or require to measure at fair value on
reporting date.
Non-recurring: This is a one-time or infrequent expense
that a business incurs and is not expected to pay again
in the future.
Requires fair value measurement only in particular
circumstances
36
Disclosu
re
Note : Recurring fair value measurement ( RFVM )
Non-recurring fair value measurement
[after initial recognition] ( NRFVM )
Fair value ( FV )
37
Thank you