Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › IFRS 13 (Mehran PYQ)
- This topic has 2 replies, 2 voices, and was last updated 2 years ago by Stephen Widberg.
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- July 25, 2021 at 5:44 pm #629400
M/J 2016
Dear tutor
1. Why did the question ask us to apply IFRS 13 in measuring the FV of the inventory? I thought we do not apply IFRS 13 for inventory?
2. The answer uses the concept of principal and most advantageous market but not the highest and best use. I don’t understand the reason for doing so. I thought we should use the highest and best use because it is a non financial asset?
Hope you can explain. Thank you in advance.
July 25, 2021 at 5:46 pm #629402Can you explain to me please? I am having trouble in applying the concept
July 26, 2021 at 7:46 am #629434IFRS 13 applies whenever FV is being considered. So it would be relevant in determining the realisable value of inventory.
Guidance in IFRS 13 says that for items sold in a ‘market’ – i.e. inventory, use:
1. Principal market, and if there is no principal market, use:
2. Market that would give most advantageous price.Deloitte has a good summary if you need more:
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