IFRS 13
Unobservable inputs
inputs for which market data are not available and that are developed using the best information available about the assumptions that market participants would use when pricing the asset or liability.
level 2 inputs
inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly
market-corroborated inputs
inputs that are derived principally from or corroborated by observable market data by correlation or other means
observable inputs
inputs that are developed using market data, and that reflect the assumptions that market participants would use when pricing the asset or liability
level 1 inputs
quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date
inputs
the assumptions that market participants would use when pricing the asset or liability.
transport costs
the costs that would be incurred to transport an asset from its current location to its principal market
unit of account
the level at which an asset or a liability is aggregated or disaggregated in an IFRS for recognition purposes
most advantageous market
the market that maximises the amount that would be received to sell the asset or minimises the amount that would that would be paid to transfer the liability, after taking into account transaction costs and transport costs
principal market
the market with the greatest volume and level of activity for the asset or liability
entry price
the price paid to acquire an asset or received to assume a liability in an exchange transaction
exit price
the price that would be received to sell an asset or paid to transfer a liability
fair value
the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date
expected cash flow
the probability-weighted average of possible future cash flows
orderly transaction
a transaction that assumes exposures to the market for a period before the measurement date allow for marketing activities that are usual and customary for such transactions
cost approach
a valuation technique that reflects the amount that would be required currently to replace the service capacity of an asset
market approach
a valuation technique that uses prices and other relevant information generated by market transactions involving identical assets
non-performance risk
the risk that an entity will no fulfil an obligation.
highest and best use
the use of a non-financial asset by market participants that would maximise the value of the asset and liabilities within which the asset would be used
level 3 inputs
unobservable inputs for the asset or laibility
income approach
valuation techniques that convert future amounts to a single current amount.
transaction costs
The costs to sell an asset or transfer a liability in the principal market for the asset or liability that are directly attributable to the disposal of the asset or the transfer of the liability and meet both of the following criteria: 1. result directly from and are essential to that transaction 2. they would not have been incurred by the entity had the decision to sell the asset or transfer the liability not been made
active market
a market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis.
market participants
buyers and sellers in the principal market for the asset or liability that have all of the following characteristics: - they are independent - they are knowledgeable - they are able to enter into a transaction for the asset or liability - they are willing to enter into a transaction for the asset or liability
risk premium
compensation sought by risk-adverse market participants for bearing the uncertainty inherent in the cash flows of an asset or liability