[jessicafraser]

First time pass with 70% – was not expecting that at all! What a shocker of an exam! Two more to go 🙂

[jessicafraser]

@geologist81 said:
Question 1:
7pts, why is the replacement cost of 17 mil not a good fv for the building ?

This is IFRS3 FV measurements, non-financial assets FV are based on highest and best use if the conditions, that it must be financially and legally feasable, are met, which it is.
The market value of the building, for residential use, was 24 mil and also demolition plus permit costs of 1 mil. I did include this to come to a FV of 25 mil, but I was not fully sure if I had to include the 1 mil in the FV ??

I had calculated the FV of the building as 23 mil – do you not deduct the demolition costs of 1mil from the market value of 24mil to get the net amount? This is the cost to bring the asset to it’s highest and best use (residential use). I may have misread the question though!!

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