CERTYNEX IFRS ACADEMY

An instrument traded on a dealer market shows a bid price of 51.80 and an ask price of 52.40. Which price does the standard use for fair value?

The mid-market price, which the standard requires for all measurements to avoid any judgement.

The bid price, because it is the most prudent and does not risk overstating the instrument.

The ask price, because the entity plans to buy other securities of the same class.

The price, within the bid-ask spread, that is most representative of fair value in the circumstances.