Commission Regulation (EU) No 1255/2012
of 11 December 2012
amending Regulation (EC) No 1126/2008 adopting certain international accounting standards in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council as regards International Accounting Standard 12, International Financial Reporting Standards 1 and 13, and Interpretation 20 of the International Financial Reporting Interpretations Committee
(Text with EEA relevance) (revoked)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Regulation revoked (31.12.2020) by The International Accounting Standards and European Public Limited-Liability Company (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/685), reg. 1(2), Sch. 2 para. 34 (with reg. 20(2)) (as amended by S.I. 2020/335, regs. 1, 5); 2020 c. 1, Sch. 5 para. 1(1)

Article 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Article 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Article 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

ANNEX INTERNATIONAL ACCOUNTING STANDARDS
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

AMENDMENTS TO IFRS 1 First-time Adoption of International Financial Reporting Standards
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

PRESENTATION AND DISCLOSURE
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Explanation of transition to IFRSs
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Use of deemed cost after severe hyperinflation
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

31C If an entity elects to measure assets and liabilities at fair value and to use that fair value as the deemed cost in its opening IFRS statement of financial position because of severe hyperinflation (see paragraphs D26–D30), the entity’s first IFRS financial statements shall disclose an explanation of how, and why, the entity had, and then ceased to have, a functional currency that has both of the following characteristics:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Appendix B Exceptions to the retrospective application of other IFRSs
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Derecognition of financial assets and financial liabilities
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Appendix D Exemptions from other IFRSs
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D1 An entity may elect to use one or more of the following exemptions:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Fair value measurement of financial assets or financial liabilities at initial recognition
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
D20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Severe hyperinflation
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
D26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D27 The currency of a hyperinflationary economy is subject to severe hyperinflation if it has both of the following characteristics:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
D28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
D29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
D30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

EFFECTIVE DATE
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
39H . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

AMENDMENTS TO IFRS 9
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

IFRS 9 Financial Instruments (issued November 2009)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

IFRS 9 Financial Instruments (issued October 2010)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Amendments to IAS 12 Income Taxes
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

DEFINITIONS
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Tax base
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

MEASUREMENT
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

51A In some jurisdictions, the manner in which an entity recovers (settles) the carrying amount of an asset (liability) may affect either or both of:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Example A
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Example B
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Example C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
51B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
51C . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Example illustrating paragraph 51C
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
51D . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
51E . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

EFFECTIVE DATE
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

WITHDRAWAL OF SIC-21
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

INTERNATIONAL FINANCIAL REPORTING STANDARD 13 Fair Value Measurement
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

OBJECTIVE
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

1 This IFRS:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SCOPE
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6 The measurement and disclosure requirements of this IFRS do not apply to the following:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7 The disclosures required by this IFRS are not required for the following:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

MEASUREMENT
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Definition of fair value
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The asset or liability
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

11 A fair value measurement is for a particular asset or liability. Therefore, when measuring fair value an entity shall take into account the characteristics of the asset or liability if market participants would take those characteristics into account when pricing the asset or liability at the measurement date. Such characteristics include, for example, the following:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13 The asset or liability measured at fair value might be either of the following:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The transaction
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

16 A fair value measurement assumes that the transaction to sell the asset or transfer the liability takes place either:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Market participants
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

23 In developing those assumptions, an entity need not identify specific market participants. Rather, the entity shall identify characteristics that distinguish market participants generally, considering factors specific to all the following:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The price
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Application to non-financial assets
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Highest and best use for non-financial assets
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

28 The highest and best use of a non-financial asset takes into account the use of the asset that is physically possible, legally permissible and financially feasible, as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Valuation premise for non-financial assets
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

31 The highest and best use of a non-financial asset establishes the valuation premise used to measure the fair value of the asset, as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Application to liabilities and an entity’s own equity instruments
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

General principles
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

34 A fair value measurement assumes that a financial or non-financial liability or an entity’s own equity instrument (eg equity interests issued as consideration in a business combination) is transferred to a market participant at the measurement date. The transfer of a liability or an entity’s own equity instrument assumes the following:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Liabilities and equity instruments held by other parties as assets
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

38 In such cases, an entity shall measure the fair value of the liability or equity instrument as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

39 An entity shall adjust the quoted price of a liability or an entity’s own equity instrument held by another party as an asset only if there are factors specific to the asset that are not applicable to the fair value measurement of the liability or equity instrument. An entity shall ensure that the price of the asset does not reflect the effect of a restriction preventing the sale of that asset. Some factors that may indicate that the quoted price of the asset should be adjusted include the following:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Liabilities and equity instruments not held by other parties as assets
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

41 For example, when applying a present value technique an entity might take into account either of the following:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Non-performance risk
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

43 When measuring the fair value of a liability, an entity shall take into account the effect of its credit risk (credit standing) and any other factors that might influence the likelihood that the obligation will or will not be fulfilled. That effect may differ depending on the liability, for example:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Restriction preventing the transfer of a liability or an entity’s own equity instrument
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
45 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
46 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Financial liability with a demand feature
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
47 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Application to financial assets and financial liabilities with offsetting positions in market risks or counterparty credit risk
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
48 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

49 An entity is permitted to use the exception in paragraph 48 only if the entity does all the following:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
50 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
51 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
52 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Exposure to market risks
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
53 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
54 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
55 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Exposure to the credit risk of a particular counterparty
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
56 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Fair value at initial recognition
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
57 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
58 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
59 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
60 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Valuation techniques
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
61 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
62 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
63 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
64 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

65 Valuation techniques used to measure fair value shall be applied consistently. However, a change in a valuation technique or its application (eg a change in its weighting when multiple valuation techniques are used or a change in an adjustment applied to a valuation technique) is appropriate if the change results in a measurement that is equally or more representative of fair value in the circumstances. That might be the case if, for example, any of the following events take place:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
66 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Inputs to valuation techniques
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

General principles
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
67 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
68 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
69 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Inputs based on bid and ask prices
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
70 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
71 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Fair value hierarchy
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
72 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
73 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
74 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
75 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Level 1 inputs
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
76 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
77 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

78 A Level 1 input will be available for many financial assets and financial liabilities, some of which might be exchanged in multiple active markets (eg on different exchanges). Therefore, the emphasis within Level 1 is on determining both of the following:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

79 An entity shall not make an adjustment to a Level 1 input except in the following circumstances:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
80 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Level 2 inputs
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
81 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

82 If the asset or liability has a specified (contractual) term, a Level 2 input must be observable for substantially the full term of the asset or liability. Level 2 inputs include the following:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

83 Adjustments to Level 2 inputs will vary depending on factors specific to the asset or liability. Those factors include the following:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
84 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
85 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Level 3 inputs
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
86 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
87 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
88 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
89 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
90 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

DISCLOSURE
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

91 An entity shall disclose information that helps users of its financial statements assess both of the following:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

92 To meet the objectives in paragraph 91, an entity shall consider all the following:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

93 To meet the objectives in paragraph 91, an entity shall disclose, at a minimum, the following information for each class of assets and liabilities (see paragraph 94 for information on determining appropriate classes of assets and liabilities) measured at fair value (including measurements based on fair value within the scope of this IFRS) in the statement of financial position after initial recognition:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

94 An entity shall determine appropriate classes of assets and liabilities on the basis of the following:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

95 An entity shall disclose and consistently follow its policy for determining when transfers between levels of the fair value hierarchy are deemed to have occurred in accordance with paragraph 93(c) and (e)(iv). The policy about the timing of recognising transfers shall be the same for transfers into the levels as for transfers out of the levels. Examples of policies for determining the timing of transfers include the following:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
96 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
97 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
98 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
99 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Appendix A Defined terms
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Appendix B Application guidance
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

THE FAIR VALUE MEASUREMENT APPROACH
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

B2 The objective of a fair value measurement is to estimate the price at which an orderly transaction to sell the asset or to transfer the liability would take place between market participants at the measurement date under current market conditions. A fair value measurement requires an entity to determine all the following:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

VALUATION PREMISE FOR NON-FINANCIAL ASSETS (PARAGRAPHS 31–33)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

B3 When measuring the fair value of a non-financial asset used in combination with other assets as a group (as installed or otherwise configured for use) or in combination with other assets and liabilities (eg a business), the effect of the valuation premise depends on the circumstances. For example:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

FAIR VALUE AT INITIAL RECOGNITION (PARAGRAPHS 57–60)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

B4 When determining whether fair value at initial recognition equals the transaction price, an entity shall take into account factors specific to the transaction and to the asset or liability. For example, the transaction price might not represent the fair value of an asset or a liability at initial recognition if any of the following conditions exist:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

VALUATION TECHNIQUES (PARAGRAPHS 61–66)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Market approach
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Cost approach
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Income approach
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

B11 Those valuation techniques include, for example, the following:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Present value techniques
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

The components of a present value measurement
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

B13 Present value (ie an application of the income approach) is a tool used to link future amounts (eg cash flows or values) to a present amount using a discount rate. A fair value measurement of an asset or a liability using a present value technique captures all the following elements from the perspective of market participants at the measurement date:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

General principles
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

B14 Present value techniques differ in how they capture the elements in paragraph B13. However, all the following general principles govern the application of any present value technique used to measure fair value:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Risk and uncertainty
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

B17 Present value techniques differ in how they adjust for risk and in the type of cash flows they use. For example:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Discount rate adjustment technique
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

B20 To illustrate a build-up approach, assume that Asset A is a contractual right to receive CU800 in one year (ie there is no timing uncertainty). There is an established market for comparable assets, and information about those assets, including price information, is available. Of those comparable assets:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Expected present value technique
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

B24 In making an investment decision, risk-averse market participants would take into account the risk that the actual cash flows may differ from the expected cash flows. Portfolio theory distinguishes between two types of risk:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

B27 To illustrate Methods 1 and 2, assume that an asset has expected cash flows of CU780 in one year determined on the basis of the possible cash flows and probabilities shown below. The applicable risk-free interest rate for cash flows with a one-year horizon is 5 per cent, and the systematic risk premium for an asset with the same risk profile is 3 per cent.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

B29 In theory, the present value (ie the fair value) of the asset’s cash flows is the same whether determined using Method 1 or Method 2, as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

APPLYING PRESENT VALUE TECHNIQUES TO LIABILITIES AND AN ENTITY’S OWN EQUITY INSTRUMENTS NOT HELD BY OTHER PARTIES AS ASSETS (PARAGRAPHS 40 AND 41)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

B31 When using a present value technique to measure the fair value of a liability that is not held by another party as an asset (eg a decommissioning liability), an entity shall, among other things, estimate the future cash outflows that market participants would expect to incur in fulfilling the obligation. Those future cash outflows shall include market participants’ expectations about the costs of fulfilling the obligation and the compensation that a market participant would require for taking on the obligation. Such compensation includes the return that a market participant would require for the following:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

B33 An entity can include a risk premium in the fair value measurement of a liability or an entity’s own equity instrument that is not held by another party as an asset in one of the following ways:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

INPUTS TO VALUATION TECHNIQUES (PARAGRAPHS 67–71)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

B34 Examples of markets in which inputs might be observable for some assets and liabilities (eg financial instruments) include the following:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

FAIR VALUE HIERARCHY (PARAGRAPHS 72–90)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Level 2 inputs (paragraphs 81–85)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

B35 Examples of Level 2 inputs for particular assets and liabilities include the following:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Level 3 inputs (paragraphs 86–90)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

B36 Examples of Level 3 inputs for particular assets and liabilities include the following:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

MEASURING FAIR VALUE WHEN THE VOLUME OR LEVEL OF ACTIVITY FOR AN ASSET OR A LIABILITY HAS SIGNIFICANTLY DECREASED
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

B37 The fair value of an asset or a liability might be affected when there has been a significant decrease in the volume or level of activity for that asset or liability in relation to normal market activity for the asset or liability (or similar assets or liabilities). To determine whether, on the basis of the evidence available, there has been a significant decrease in the volume or level of activity for the asset or liability, an entity shall evaluate the significance and relevance of factors such as the following:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B41 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Identifying transactions that are not orderly
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

B43 The determination of whether a transaction is orderly (or is not orderly) is more difficult if there has been a significant decrease in the volume or level of activity for the asset or liability in relation to normal market activity for the asset or liability (or similar assets or liabilities). In such circumstances it is not appropriate to conclude that all transactions in that market are not orderly (ie forced liquidations or distress sales). Circumstances that may indicate that a transaction is not orderly include the following:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

B44 An entity shall consider all the following when measuring fair value or estimating market risk premiums:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Using quoted prices provided by third parties
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B45 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B46 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B47 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Appendix C Effective date and transition
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
C3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Appendix D Amendments to other IFRSs
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CHANGE IN DEFINITION
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D1 In IFRSs 1, 3–5 and 9 (issued in October 2010) the definition of fair value is replaced with:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

IFRS 1 First-time Adoption of International Financial Reporting Standards (as amended at September 2010)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
D2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D3 Paragraph 39J is added as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D4 Paragraphs D15 and D20 are amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

IFRS 2 Share-based Payment
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D5 Paragraph 6A is added as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

IFRS 3 Business Combinations
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D6 Paragraphs 20, 29, 33 and 47 are amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D7 Paragraph 64F is added as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D8 In Appendix B paragraphs B22 and B40, B43–B46, B49 and B64 are amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

IFRS 4 Insurance Contracts
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D9 Paragraph 41E is added as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

IFRS 5 Non-current Assets Held for Sale and Discontinued Operations
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D10 Paragraph 44H is added as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

IFRS 7 Financial Instruments: Disclosures (as amended at October 2009)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
D11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D12 Paragraph 3 is amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
D13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D14 Paragraph 28 is amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D15 Paragraph 29 is amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D16 Paragraph 44P is added as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D17 In Appendix A the definition of other price risk is amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

IFRS 9 Financial Instruments (issued November 2009)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D18 Paragraph 5.1.1 is amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D19 Paragraph 5.1.1A is added as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D20 Paragraphs 5.2.1, 5.3.2, 8.2.5 and 8.2.11 are amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D21 Paragraph 8.1.3 is added as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D22 In Appendix A the introductory text is amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D23 In Appendix B paragraph B5.1, the heading above paragraph B5.5 and paragraphs B5.5 and B5.7 are amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Investments in equity instruments (and contracts on those investments)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D24 In Appendix C, in paragraph C8 the amendments to paragraph 29 of IFRS 7 Financial Instruments: Disclosures are amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D25 In paragraph C20 the amendments to paragraph 1 of IAS 28 Investments in Associates are amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D26 In paragraph C22 the amendments to paragraph 1 of IAS 31 Interests in Joint Ventures are amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D27 In paragraph C27 the amendments to paragraphs 9, 13 and 88 of IAS 39 Financial Instruments: Recognition and Measurement are amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D28 In paragraph C28 the amendments to paragraphs AG64, AG80, AG81 and AG96 of IAS 39 are amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

IFRS 9 Financial Instruments (issued October 2010)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
D29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D30 Paragraphs 3.2.14, 4.3.7 and 5.1.1 are amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D31 Paragraph 5.1.1A is added as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D32 Paragraph 5.2.1 is amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
D33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D34 Paragraphs 5.6.2, 7.2.5, 7.2.11 and 7.2.12 are amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D35 Paragraph 7.1.3 is added as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D36 In Appendix B paragraphs B3.2.11, B3.2.17, B5.1.1 and B5.2.2 are amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D37 Paragraphs B5.1.2A and B5.2.2A are added as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
D38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D39 The heading above paragraph B5.4.14 and paragraphs B5.4.14, B5.4.16 and B5.7.20 are amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Investments in equity instruments (and contracts on those investments)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.4.14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.4.16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
B5.7.20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D40 In Appendix C, in paragraph C3 the amendments to paragraphs D15 and D20 of IFRS 1 First-time Adoption of International Financial Reporting Standards are amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D41 In paragraph C11 the amendments to paragraph 28 of IFRS 7 Financial Instruments: Disclosures are amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D42 In paragraph C26 the amendments to paragraph 1 of IAS 28 Investments in Associates are amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D43 In paragraph C28 the amendments to paragraph 1 of IAS 31 Interests in Joint Ventures are amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D44 In paragraph C30 the amendments to paragraph 23 of IAS 32 Financial Instruments: Presentation are amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D45 In paragraph C49 the amendments to paragraph A8 of IFRIC 2 Members’ Shares in Co-operative Entities and Similar Instruments are amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D46 In paragraph C53 the amendments to paragraph 7 of IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments are amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

IAS 1 Presentation of Financial Statements
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D47 Paragraphs 128 and 133 are amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D48 Paragraph 139I is added as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

IAS 2 Inventories
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D49 Paragraph 7 is amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D50 Paragraph 40C is added as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D51 Paragraph 52 is amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D52 Paragraph 54C is added as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

IAS 10 Events after the Reporting Period
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D53 Paragraph 11 is amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D54 Paragraph 23A is added as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

IAS 16 Property, Plant and Equipment
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D55 Paragraph 26 is amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
D56 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D57 Paragraphs 35 and 77 are amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D58 Paragraph 81F is added as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

IAS 17 Leases
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D59 Paragraph 6A is added as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

IAS 18 Revenue
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D60 Paragraph 42 is added as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

IAS 19 Employee Benefits
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
D61 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D62 Paragraphs 50 and 102 are amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D63 Paragraph 162 is added as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

IAS 20 Accounting for Government Grants and Disclosure of Government Assistance
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D64 Paragraph 45 is added as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

IAS 21 The Effects of Changes in Foreign Exchange Rates
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D65 Paragraph 23 is amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D66 Paragraph 60G is added as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

IAS 28 Investments in Associates (as amended at October 2009)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D67 Paragraphs 1 and 37 are amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D68 Paragraph 41G is added as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

IAS 31 Interests in Joint Ventures (as amended at October 2009)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D69 Paragraph 1 is amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D70 Paragraph 58F is added as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

IAS 32 Financial Instruments: Presentation (as amended at September 2010)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D71 Paragraph 23 is amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D72 Paragraph 97J is added as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D73 In the Application Guidance paragraph AG31 is amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

IAS 33 Earnings per Share
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D74 Paragraphs 8 and 47A are amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D75 Paragraph 74C is added as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D76 In Appendix A paragraph A2 is amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

IAS 34 Interim Financial Reporting (as amended at May 2010)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
D77 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D78 Paragraph 16A(j) is added as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D79 Paragraph 50 is added as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

IAS 36 Impairment of Assets
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D80 Paragraph 5 is amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D81 Paragraph 6 is amended as follows (as a consequence of the amendment to the definition of fair value less costs to sell, all references to ‘fair value less costs to sell’ in IAS 36 are replaced with ‘fair value less costs of disposal’):
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D82 Paragraphs 12, 20 and 22 are amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
D83 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D84 Paragraph 28 is amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D85 Paragraph 53A is added as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D86 Paragraphs 78, 105, 111, 130 and 134 are amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D87 Paragraph 140I is added as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

IAS 38 Intangible Assets
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D88 Paragraph 8 is amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D89 Paragraph 33 is amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D90 The heading above paragraph 35 is amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Intangible asset acquired in a business combination
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
D91 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D92 Paragraphs 47, 50, 75, 78, 82, 84 and 100 are amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D93 Paragraph 124 is amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
D94 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D95 Paragraph 130G is added as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

IAS 39 Financial Instruments: Recognition and Measurement (as amended at October 2009)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
D96 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D97 Paragraph 9 is amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D98 Paragraphs 13 and 28 are amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D99 Paragraph 43A is added.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D100 Paragraph 47 is amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
D101 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D102 Paragraph 88 is amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D103 Paragraph 103Q is added as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D104 In Appendix A paragraphs AG46, AG52 and AG64 are amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D105 Paragraph AG64 is amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
D106 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D107 Paragraph AG76 is amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D108 Paragraph AG76A is amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
D109 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D110 Paragraphs AG80 and AG81 are amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
D111 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D112 Paragraph AG96 is amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

IAS 40 Investment Property
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
D113 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D114 Paragraphs 26, 29 and 32 are amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
D115 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D116 Paragraph 40 is amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
D117 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D118 Paragraph 48 is amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D119 The heading above paragraph 53 and paragraphs 53 and 53B are amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Inability to measure fair value reliably
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
53 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
53B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
D120 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D121 Paragraphs 78–80 are amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D122 Paragraph 85B is amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D123 Paragraph 85C is added as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

IAS 41 Agriculture
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
D124-125 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D126 Paragraphs 8, 15 and 16 are amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
D127 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D128 Paragraphs 25 and 30 are amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
D129 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D130 Paragraph 61 is added as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

IFRIC 2 Members’ Shares in Co-operative Entities and Similar Instruments (as amended at October 2009)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
D131 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
D132 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D133 Paragraph 16 is added as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D134 In the Appendix paragraph A8 is amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

IFRIC 4 Determining whether an Arrangement contains a Lease
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
D135 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D136 In paragraph 15(a) ‘fair value’ is footnoted as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

IFRIC 13 Customer Loyalty Programmes
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
D137 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D138 Paragraph 6 is amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D139 Paragraph 10B is added as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D140 In the Application Guidance paragraphs AG1–AG3 are amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

IFRIC 17 Distributions of Non-cash Assets to Owners
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
D141 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
D142 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D143 Paragraph 17 is amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D144 Paragraph 20 is added as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments (as amended at September 2010)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
D145 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
D146 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D147 Paragraph 7 is amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

D148 Paragraph 15 is added as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

IFRIC INTERPRETATION 20 Stripping Costs in the Production Phase of a Surface Mine
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

REFERENCES
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

BACKGROUND
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

SCOPE
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

ISSUES
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

7 This Interpretation addresses the following issues:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

CONSENSUS
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Recognition of production stripping costs as an asset
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

9 An entity shall recognise a stripping activity asset if, and only if, all of the following are met:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Initial measurement of the stripping activity asset
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

13 When the costs of the stripping activity asset and the inventory produced are not separately identifiable, the entity shall allocate the production stripping costs between the inventory produced and the stripping activity asset by using an allocation basis that is based on a relevant production measure. This production measure shall be calculated for the identified component of the ore body, and shall be used as a benchmark to identify the extent to which the additional activity of creating a future benefit has taken place. Examples of such measures include:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Subsequent measurement of the stripping activity asset
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Appendix A Effective date and transition
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
A1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
A2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
A3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
A4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Appendix B . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Amendments to IFRS 1 First-time Adoption of International Financial Reporting Standards
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

B1 In Appendix D, paragraph D1 is amended as follows:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

B2 After paragraph D31 a heading and paragraph D32 are added:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Stripping costs in the production phase of a surface mine
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
D32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

B3 After paragraph 39L paragraph 39M is added:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .