TFRS 13 defines fair value as a market-based measurement and classifies inputs into three levels: Level 1 (quoted prices in active markets), Level 2 (other observable inputs) and Level 3 (unobservable inputs, such as discounted cash flow models).
Investment property, derivatives and assets acquired in business combinations are measured at fair value.
Source: TFRS 13
Related terms
ValuationEstimating the monetary value of a company, share, asset or liability at a specific date and for a specific purpose.Discounted cash flow (DCF)A valuation method based on discounting the free cash flows an asset or company will generate in the future to the present using an appropriate discount rate.Investment propertyLand and buildings held to earn rental income, for capital appreciation, or both.Accounting policiesThe specific principles, bases, conventions, rules and practices an entity applies in preparing its financial statements.Amortised costThe amount at which a financial asset or liability is measured at initial recognition, minus principal repayments, plus cumulative amortisation calculated using the effective interest method.AssociateAn entity over which the investor has significant influence but not control or joint control.
Last updated: October 22, 2026 · This definition is for general information only.