CERTYNEX IFRS ACADEMY

Linde bought a machine for 120,000 a year ago. At the reporting date, selling this machine in its principal market to a market participant would bring in 95,000. Which amount corresponds to the fair value of the machine?

95,000, the price that would be received on sale at the measurement date.

120,000, the price paid on acquisition.

107,500, the average of the price paid and the exit price, to smooth the gap between the two.

25,000, the loss in value since acquisition.