IFRS 13Chapter 4Lesson 1
Which market? Principal market, most advantageous market, transaction and transport costs
Step 1 of 6Learning objectives
Go deeper+1 deeper insight · +1 point of attention
The measurement assumes a transaction in the principal market or, failing that, the most advantageous market. The price is not reduced by transaction costs, but it is reduced by transport costs when location is a characteristic of the asset.
35 minNot started
Learning objectives
- Identify the principal market and explain why it prevails over a market offering a better price.
- Determine the most advantageous market by comparing amounts net of transaction and transport costs.
- Calculate a fair value without deducting transaction costs, but deducting transport costs when location is a characteristic.