AASB 116 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.
E) None of the given answers.

Question

Quizplus · Accepted Answer

AASB 116 states that fair values should be based on active and liquid markets if available (Option A), but if not, the price should be determined based on an exchange between knowledgeable, willing parties in an arm's length transaction (Option C). Additionally, fair values are determined on the basis that an entity is a going concern (Option B) and all of the given options are correct. Therefore, the correct answer is D, all of the given answers.

AASB 116 Provides Guidance on Fair Values Which States