Ican 2021 Corporate Reporting Question 4

Practice mixed question 4 from the 2021 Ican Corporate Reporting examination.

Ican 2021 Corporate Reporting Mixed

Question 4 ICAN • 2021 • CORPORATE REPORTING • mixed

Case Stimulus

Fair value is a market based measurement not an entity - specific measurement. It focuses on assets and liabilities and on exit (selling) price. It also takes into account market conditions at the measurement date. In other words, fair value measurement look at the amount for which the holders of an asset could sell it and the amount which the holder of a liability would have to pay to transfer it.

Requirements

( a )

Discuss the view that fair value is a more relevant measure to use in corporate reporting than historical cost.

( b )

Discuss the valuation techniques in fair value measurement in accordance with IFRS 13.

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About This Question

This is Ican 2021 Corporate Reporting Question 4. It is one of the mixed questions from the 2021 Ican Corporate Reporting examination.

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