Fair value measurement information under IFRS

IFRS 13 “Fair value measurement” sets out a single consistent framework for measuring fair value within IFRS financial statements and outlines a standardised set of disclosures in respect of fair value measurements. IFRS 13 has been mandatory now for some years, with application being required for annual reporting periods beginning on or after 1 January 2013. This report sets out the results of how requirements of the standard have been put into practice, both in terms of measurement and disclosure, in the consolidated financial statements of 139 large public limited companies with year ends between 31 March 2016 and 1 April 2017. It is not an exhaustive study of all aspects of IFRS 13 application and its conclusions are limited to our findings in respect of the areas analysed within the financial statements reviewed.

Intesa Sanpaolo SpA Period End 31 December 2009

Intesa Sanpaolo SpA Annual Report 2009
Fair valuing residual interests in previous associate and joint venture following partial disposals boosts profit
Italian bank Intesa Sanpaolo makes partial disposals of investments in companies previously accounted for as an associate and joint venture that result in loss of significant influence and joint control and fair values the residual interests thus increasing profit from continuing operations by 5.5%.

Prior year change to criteria for impairing investments reversed
Italian bank Intesa Sanpaolo reverses a prior year change to its procedure for impairing financial assets and redefines a “prolonged” decline in fair value as 24 rather than 12 months thus demonstrating a lack of consistency.

Intesa Sanpaolo SpA Period End 31 December 2008

Intesa Sanpaolo Annual Report 2008

Reclassification effects mitigate diminished profit
Italian bank Intesa Sanpaolo reclassifies €10.2 billion debt securities as loans, averting a €459 million, or 43.2%, decrease in pre-tax profit and an €862 million, or 1.7%, decrease in equity.