IFRS 13 Fair Value Measurement — AERA Platform

Key features

The fair value backbone for every IFRS standard

IFRS 13 provides the framework. AERA centralizes every fair value measurement across your IFRS modules in one auditable registry with full transparency.

Valuation techniques

Three approaches with input documentation

Document valuation technique selection per IFRS 13.61-66 — market approach (comparables, multiples), income approach (DCF, option pricing), or cost approach (replacement cost). Every input is classified, timestamped, and linked to its source for full auditability.

Market approach: comparable transactions, guideline companies, quoted prices
Income approach: DCF, Black-Scholes, binomial, MEEM, relief from royalty
Cost approach: replacement cost new less depreciation
Technique selection rationale with audit documentation

Level 3 sensitivity

Unobservable input sensitivity analysis

For Level 3 measurements, IFRS 13.93(h) requires sensitivity disclosure. AERA runs automated sensitivity on each unobservable input — showing how fair value changes when inputs move ±10% or ±1 standard deviation. Identify which inputs drive the most valuation uncertainty.

Input-by-input sensitivity with ± range visualization
Interrelationship analysis between correlated inputs
Narrative generation for disclosure notes
Historical input volatility tracking over periods

Level transfers

Hierarchy level transfer tracking

When an instrument or asset moves between fair value levels — e.g., from Level 2 to Level 3 when market data becomes unavailable — AERA records the transfer with date, reason, and fair value at transfer. Disclosure of transfers into and out of Level 3 is automated per IFRS 13.93(e).

Automatic detection of level change triggers
Transfer documentation with reason and authorization
Fair value at transfer date captured for disclosure
Period-over-period transfer summary report

Reconciliation

Level 3 reconciliation with full movement analysis

IFRS 13.93(e) requires a reconciliation of opening to closing balances for Level 3 measurements. AERA decomposes the movement into gains/losses in P&L, gains/losses in OCI, purchases, sales, transfers in, and transfers out — with drill-down to individual items.

Opening-to-closing waterfall with 6+ driver categories
P&L vs OCI classification of unrealized gains/losses
Separate tracking of realized vs unrealized components
IFRS 13.93(f) — unrealized gains/losses still held at period end

Cross-module

Centralized fair value registry across all IFRS modules

IFRS 13 is not a standalone standard — it serves IFRS 9 (financial instruments), IFRS 16 (ROU assets), IFRS 2 (share-based payments), and IFRS 3 (business combinations). AERA links every fair value measurement to its source module, creating a single registry with unified hierarchy classification.

Automatic feed from IFRS 9 (financial instruments at FVTPL/FVOCI)
IFRS 3 PPA asset values linked to acquisition deals
IFRS 2 grant-date fair values from Black-Scholes calculations
Consolidated disclosure across all source standards

Disclosure

Automated IFRS 13 disclosure package

Generate all required IFRS 13 disclosures: fair value hierarchy table for recurring and non-recurring measurements, valuation techniques and inputs used, Level 3 reconciliation, sensitivity analysis, and transfers between levels — in auditor-ready format.

IFRS 13.93(a-b) — hierarchy table by asset class
IFRS 13.93(d) — valuation techniques and inputs description
IFRS 13.93(e-f) — Level 3 reconciliation and unrealized gains
IFRS 13.93(h) — sensitivity of Level 3 to unobservable inputs