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.

Area	US GAAP (ASC 820)	IFRS (IFRS 13)
Framework	Exit price, hierarchy, HBU	Same
NAV practical expedient	Available for certain investments	Not an identical expedient
Disclosures	Minor differences in detail	Minor differences in detail

• 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.