Implementation of IFRS 13 Fair Value Measurement: Issues and Challenges faced by the Islamic Financial Institutions in Malaysia
Pelaksanaan IFRS 13 Pengukuran Nilai Saksama: Isu dan Cabaran dihadapi oleh Institusi Kewangan Islam di Malaysia

Faculty of Economics and Muamalat
Universiti Sains Islam Malaysia
71800 Nilai, Negeri Sembilan, MALAYSIA.

nathasa@usim.edu.my

Faculty of Economics and Muamalat
Universiti Sains Islam Malaysia
71800 Nilai, Negeri Sembilan, MALAYSIA.


Faculty of Economics and Muamalat
Universiti Sains Islam Malaysia
71800 Nilai, Negeri Sembilan, MALAYSIA.

ainulashikin@usim.edu.my

Faculty of Accountancy
Universiti Teknologi MARA
18500 Machang, Kelantan, MALAYSIA.

marzianamadah@uitm.edu.my

Wan Amalina Wan Abdullah@Wan Muda
Faculty of Economic and Management Science
Universiti Sultan Zainal Abidin
Gong Badak Campus
21300 Kuala Terengganu, MALAYSIA.

wan amalina@unisza.edu.my

Abstract

Fair value (FV) is claimed to be superior to other forms of measurement mainly because the former is easily understood by investors and stakeholders. However, the challenges faced in deploying International Financial Reporting Standards (IFRS) 13 FV Measurement could result in inconsistent application and unexpected costs related to the requirements of the standard. As such, this study explored the issues and challenges of implementing IFRS 13 FV Measurement faced by financial instruments, particularly within the context of Islamic Financial Institutions (IFIs). Upon adopting the qualitative approach, in-depth interview sessions were held with several academicians, accountants, auditors, and professional body representatives. The study outcomes revealed that issues in implementation of FV measurement were related to the relevance of measurement and hierarchy of level of FV measurement. Notably, issues pertaining to FV measurement were highlighted from the Shariah perspective. Valuable insights on the issues revolving around IFRS 13 implementation, particularly on financial instruments in Malaysia, are presented in this study.

Keywords

fair value; fair value measurement; financial instruments; IFRS 13; Islamic financial institutions
https://doi.org/10.17576/pengurusan-2021-63-04

Citation

Ramli, N. M., Abdul Rahman, A. R., Marzuki, A., Marzuki, M. M., & Wan Abdullah@Wan Muda, W. A. (2021). Implementation of IFRS 13 Fair Value Measurement: Issues and Challenges faced by the Islamic Financial Institutions in Malaysia. Jurnal Pengurusan, 63, 51–60. https://doi.org/10.17576/pengurusan-2021-63-04

@article{ramli2021implementation,
  title={Implementation of IFRS 13 Fair Value Measurement: Issues and Challenges faced by the Islamic Financial Institutions in Malaysia},
  author={Ramli, Nathasa Mazna and Abdul Rahman, Abdul Rahim and Marzuki, Ainulashikin and Marzuki, Marziana Madah and Wan Abdullah@Wan Muda, Wan Amalina},
  journal={Jurnal Pengurusan},
 

volume={63},
  number={},
  pages={51—60},
  year={2021},
  doi={https://doi.org/10.17576/pengurusan-2021-63-04},
  publisher={Penerbit UKM},
}

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63 (2021) 51 – 60

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