• 10 Dec 2012

D-Day Looms For New Fair Value Rules

New white paper looks at impacts for investment fund industry


January 1, 2013 brings its own form of D-Day for the investment funds industry: Data Day. For it is on this date that International Financial Reporting Standards 13 Fair Value Measurement (IFRS 13) becomes effective.

The aim of IFRS 13 is to introduce a consistent global definition of fair value, along with enhanced disclosures for how fair value is measured. The rule is almost identical to the U.S. Financial Accounting Standards Board’s revised Fair Value Measurement 1 (formerly known as FAS 157), resulting in a consistent set of accounting standards that determine how reporting entities around the world measure and disclose fair value of their assets and liabilities. IFRS 13 disclosure requirements extend the scope to beyond IAS 32 and 39 from only financial instruments.

So what does this mean for market participants? The bottom line is come January, investment funds – or their respective fund administrators – must have the necessary data gathering capabilities in place if they are to comply with the new accounting standard when they compile their first quarter reports.

To learn more, download the white paper here