When Determining the Fair Value of Biological Assets and There

question 19

Multiple Choice

When determining the fair value of biological assets and there is no market price for that asset in its present condition AASB 141/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.

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