CERTYNEX IFRS ACADEMY

For an instrument, Mervale has observable prices for comparable items and internal cash flow forecasts. What does the standard provide for the choice of valuation technique?

Choose the technique that is simplest to document, whatever the data available.

Choose techniques suited to the circumstances, maximising relevant observable data.

Choose the technique giving the most prudent amount, so as not to overstate the item.

Choose the technique relying on internal forecasts, because the entity knows them better than the market does.