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mehran
One such asset is a piece of land, which is currently used for farming. The fair
value of the land if used for farming is $5 million. If the land is used for farming
purposes, a tax credit of $0.1 million arises.while calculating fv ,shud we take into account of tax credit and include it in fv?
kaplan kit as done this way justifying fv shuld reflect the cost structure to continue operating the land for farming, including any tax credits which could be realised by market participants.chatgpt answer:
Fair value measurement generally does not reflect the cost structure to continue operating but rather the amount for which an asset could be exchanged, or a liability settledwhich is correct sir?
Mehran is nearly 10 years old and relates to a totally different syllabus. I strongly recommend that you focus on questions from the last 5 years.
The Kaplan answer is taken from an old examiner’s answer.
I did a bit of research but even the KPMG handbook can’t help (from what I can see)
Point being tested is highest and best use. As long as you conclude residential, that’s all that matters.
Best I can do.
🙂
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