P2

Seite 1

What have i done

Q2 (M/J Sample Paper - Valuing Land & Property

IFRS 13 - Fair Value Measurement

1. Def of FV

2. FV of Non-financial asset

3. What is highest and best use

4. FV Hierarchy 1 & 2

5. Determination Criteria for level 2 and the move to level 3

OP: Hierarchy & Level 1,2,3 Inputs

Seite 2

Q2a Valuing Land & Property (M/J Sample17)

IFRS 13 - Fair Value Measurement

1. Def of FV

The price which would be received to sell an asset or

Paid to transfer a liability in an orderly transaction between market participants at the measurement date

2. FV of Non-financial asset

Takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or

by selling it to another market participant who would use the asset in its highest and best use

3. What is highest and best use

Takes into account the use of the asset which is physically possible, legally permissible and financially feasible

4. FV Hierarchy 1 & 2

Lack of an active market for identical assets, it would be rare for property to be classified in Level 1 of the fair value hierarchy.

In market conditions where property is actively purchased and sold, the fair value measurement might be classified in Level 2

5. Determination Criteria for level 2 and the move to level 3

OP: Hierarchy & Level 1,2,3 Inputs