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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › IFRS 2
Hello,
In SAR, cash based payment, we have the instinct value.
1. Could you please explain this? I am bit confused to understand the concept.
2. It is also mentioned that the instinct value of SAR will equal its fair value. What does that mean?
Thanks
Imagine that a Big Mac costs 10.
You have an option to buy the Big Mac for 6.
The intrinsic value is 4 – your saving – also its fair value.
