[IFRS 9 Financial Instruments replaced IAS 39. IFRS 9 applies to all items that were previously within the scope of IAS 39.]
BC104 The exposure draft and Topic 820 stated that although the definition of fair value refers to assets and liabilities, it also should be applied to an instrument measured at fair value that is classified in an entity’s own shareholders’ equity. Respondents to the discussion paper asked for explicit guidance for measuring the fair value of such instruments because Topic 820 did not contain explicit guidance. Consequently, the boards decided to describe how an entity should measure the fair value of its own equity instruments (eg when an acquirer issues equity in consideration for an acquiree in a business combination).
BC105 The exposure draft proposed requiring an entity to measure the fair value of its own equity instruments from the perspective of a market participant that holds the instrument as an asset. That was because the issuer of an equity instru
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