When Determining the Fair Value of Biological Assets and There

question 9

Multiple Choice

When determining the fair value of biological assets and there is no market price for that asset in its present condition IAS 41 requires that:

• A) the entity uses the present value of expected net cash flows from the asset discounted at a current market-determined pre-tax rate.
• B) the entity measure the asset at cost.
• C) the entity uses the contract prices for recent sales of similar assets adjusted for the effects of biological transformation.
• D) the entity uses sector benchmarks.