CERTYNEX IFRS ACADEMY

A colleague writes in a memo: "Under IFRS 13, the fair value of our land is the one that reflects management's plan; it is an entity-specific measurement." What is wrong with this sentence?

Fair value must be determined from a price observable in an active market.

The fair value of land is not covered by IFRS 13 but is left to management.

The fair value of the land should equal its acquisition cost.

Fair value is a market-based measurement, not an entity-specific one.