AASB 141 States That Where No Active Market Exists Fair

question 14

Multiple Choice

AASB 141 states that where no active market exists fair value may be determined by:

• A) the most recent market transaction price, irrespective of any changes to economic conditions.
• B) market prices for similar assets without adjustments to reflect differences.
• C) sector benchmarks expressed in relevant units for that type of asset.
• D) using net present values calculated at the current-market determined post-tax rate.

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Definitions:

Interest And Taxes

Financial charges on borrowed capital and compulsory contributions to state revenue, both of which affect a company's net income.

Return On Investment

A performance measure used to evaluate the efficiency of an investment or compare the efficiency of multiple investments.

Unit Sales

The volume of product units sold by a company in a specific period.

Full Cost

The total cost of manufacturing and delivering a product or service, including direct and indirect costs.