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wrong opional question choice would cost me a lot of marks. I chose Q4. Hope that it would be a good day to the marker on that day. How to calculate fair value in Q4. I also did not read the q1 carefully to calculate impairment of goodwill. a lot of stupid mistakes. ;(((
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For Q4 (b) the first part of the question is asking the FV from the reference market,
ie to identity the principle market ( the greatest trading volume) and the most advantageous market (the maximization of value)Entity should measure the fair value at the principle market, or the most advantageous market (if the absence of principle market).
The most advantageous market should be determined by taking into account of transaction cost, however transaction cost should be ignore on the fair value measurement because it is entity specific cost, not market participant specific.
the second part is quite complicated and i still dunno how to get to the correction answer, but the entity non-performing risk should be taken into account as IFRS 13 assume the credit of the entity and market participant will be same.
This part of question is testing on the application of fair value hierarchy.
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