MFRS 13 Fair Value Measurement sets out a framework for measuring fair value in accordance with...

MFRS 13 Fair Value Measurement sets out a framework for measuring fair value in accordance with the International Financial Reporting Standard (IFRS).

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An entity has a piece of land on which is situated a building that is used as a warehouse. The indicated value as currently used is RM2 million for the land and RM1 million for the factory building If the factory is demolished and the whole piece of land is used as a parking lot, the fair value of the land will be RM4.5 milion (after demolition cost of the building). Discuss the fair value measurement of the land and the warehouse.

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ekkarill92 answered 1 year ago

What are the rationales behind the issuance of the MFRS Fair Value Measurement? (4 marks)

What are the rationales behind the issuance of the MFRS Fair Value Measurement?

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IFRS 13 Fair Value Measurement 1 Introduction Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, also referred to as the willing buyer-willing seller principle. It is important to note that fair value is a market-based measurement and not an entity-specific measurement. This guidance paper expands on the concept of fair value, provides some theoretical information to...

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The International Financial Reporting Standard IFRS13 Fair value measurement was jointly issued by the IASB and the FASB in May 2011. The standard defines fair value, establishes framework for measuring fair value and requires significant disclosures relating to fair value measurement. Required: a. Discuss the main principles of fair value measurement as set out in IFRS 13. b. Describe the three-level hierarchy of inputs into valuation techniques provided for in IFRS 13. c. Describe the valuation techniques. d. List five...

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MFRS 13 Fair Value Measurement sets out a framework for measuring fair value in accordance with...

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