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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › IFRS 13 (Mehran PYQ)
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.
Can you explain to me please? I am having trouble in applying the concept
IFRS 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: