- This topic has 3 replies, 2 voices, and was last updated 2 years ago by
.
- Posts
Hi there,
Is there any difference between the active market and the principal market?
For example, if it is also correct to state ‘Level 1 input – Quoted prices in principal market…’ instead of using ‘active market’?
Both have the same feature (greatest activity and volume for an asset or liability) with the same ultimate outcome – a reference that will provide the best current value using the asset at its highest and best use.
I looked everywhere for a definite answer but doesn’t seems to have one. Just wanted to clear my doubt.
Many thanks!
Usually the same.
But I would say ACTIVE in explaining a Level 1 input.
I suppose there could be 2 active markets but 1 of them has a higher volume of transactions.
All very theoretical. If examiner wants you to tinker about with this he will use words like PRINCIPAL in order to avoid confusion.
- The topic ‘Active market vs. Principal market (IFRS 13)’ is closed to new replies.