IFRS 9, Fair value option.Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › IFRS 9, Fair value option.This topic has 1 reply, 2 voices, and was last updated 1 year ago by Stephen Widberg.Viewing 2 posts - 1 through 2 (of 2 total)AuthorPosts August 12, 2023 at 11:53 am #689786 akka17bakkaParticipantTopics: 104Replies: 99☆☆☆Hello Tutor,One of the kit question says,“Ethan argued that there is a specific financial correlation between the factors, such as interest rates, that form the basis for determining the fair value of both Ethan’s investment properties and the related debt.”Could you kindly explain this statement?Thank you. August 12, 2023 at 5:17 pm #689796 Stephen WidbergKeymasterTopics: 15Replies: 3355☆☆☆☆☆Changes in interest rates will change both the fair value of real estate and the fair value of debt.So it makes sense to value both at FV, instead of leaving the debt at amortised cost.AuthorPostsViewing 2 posts - 1 through 2 (of 2 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In