Fair Value Measurement — ASC 820 vs IFRS 13

ASC 820 (US GAAP) and IFRS 13 (IFRS) are essentially converged — a single framework for how to measure fair value wherever another standard requires it. The differences are minor.

• Fair value = exit price — the price to sell an asset / transfer a liability in an orderly transaction between market participants at the measurement date.
• Three-level input hierarchy — Level 1 (quoted prices in active markets), Level 2 (other observable inputs), Level 3 (unobservable inputs).
• Highest and best use for non-financial assets; the principal (or most advantageous) market.

• Level classification — observable vs unobservable inputs; transfers between levels.
• Valuation technique — market, income, or cost approach.
• Principal market and market-participant assumptions.

• SAP implementation: fair value postings / valuation in SAP TRM and consolidation — write-up forthcoming under SAP & Enterprise Systems.

An educational reference and original synthesis — not investment advice, and not a substitute for the standard or for professional accounting guidance. For authoritative measurement detail, consult ASC 820 / IFRS 13 directly.