BC215 IFRS 7 requires an entity to disclose the fair value of financial instruments even if they are not measured at fair value in the statement of financial position. An example is a financial instrument that is measured at amortised cost in the statement of financial position.
BC216 The boards decided to require an entity to disclose the level of the fair value hierarchy in which an asset or a liability (financial or non‑financial) would be categorised if that asset or liability had been measured at fair value in the statement of financial position. The boards concluded that such a disclosure would provide meaningful information about the relative subjectivity of that fair value measurement.
BC217 Respondents to the IASB’s exposure draft and the FASB’s proposed ASU were concerned about the cost associated with preparing that disclosure because it is not always clear in which level a fair value measurement would be categorised. The boards concluded that even if determining the l
…