Fair Value Measurement Flashcards
1
Q
What standard deals with fair value measurement?
A
IFRS 13
2
Q
What are the important considerations of Fair value measurement
A
- the scope
- measurement
- disclosure
3
Q
How would you calculate the fair value in a principal market and the most advantageous market
A
Price of good - Transport costs = Fair Value
4
Q
Which market is first priority when it comes to fair value measurement
A
1 principal market
2 most advantageous market
5
Q
What is the principal market?
A
The market with the most transactions for this asset
6
Q
What is the most advantageous market?
A
The market in which you could get the most profit after transport and transaction costs
7
Q
What are the disclosure requirements of IFRS 13
A
- FV measurements at end of reporting period using significant unobvservable inputs
- reconciliation of those fair value measurements if it is recurring!
- quantitative and qualitative information about the fair value measurements using unobvservable inputs
