For the Purposes of Determining the Fair Value of an Asset

question 22

Multiple Choice

For the purposes of determining the fair value of an asset in an active market,an active market is defined in AASB 138 Intangibles,as one that has all of the following conditions:
I II III IV
The items traded in the market are homogeneous Yes Yes No Yes
Willing buyers and sellers can normally be found No Yes No Yes
Prices are available to the public Yes No Yes Yes

• A)I
• B)II
• C)III
• D)IV.

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Definitions:

Delivery

The process of transporting goods from one place to another or the act of transferring the possession of a legal instrument.

Valid Offer

A legally binding proposal made by one party to another to form a contract, requiring clear terms, intention, and communication.

Knowledge

The understanding, awareness, or familiarity gained through education or experience.

First-Hand Knowledge

refers to information or knowledge gained through direct experience or observation, as opposed to being told by someone else.