CERTYNEX IFRS ACADEMY

Kestral holds a cold-storage warehouse. There is no quoted price in an active market for an identical warehouse. Which statement is correct?

Without a quoted price, fair value less costs of disposal can never be determined, so the test is impossible

Without a quoted price, recoverable amount is deemed equal to the carrying amount of the warehouse, with no further calculation

This fair value can often still be measured; failing a reliable basis, value in use may serve as recoverable amount

The price paid when the warehouse was acquired must be used as fair value, however old it is