IAS 16 provides guidance on fair values which states:
A)Where an active and liquid market exists for an asset, the market price represents evidence of the asset's fair value.
B)Fair values are determined on the basis that an entity is a going concern.
C)Where no market exists the price should be based on the amount for which an asset could be exchanged between knowledgeable, willing parties in an arm's length transaction.
D)All of the given answers are correct.

Question

Quizplus · Accepted Answer

IAS 16 provides guidance that fair value should be determined based on market prices where available, and if not, based on an arm's length transaction between knowledgeable, willing parties, assuming the entity is a going concern.

IAS 16 Provides Guidance on Fair Values Which States