CERTYNEX IFRS ACADEMY

A valuer comments on their treatment of a quoted instrument with a bid price and an ask price. Which of their statements is wrong?

The price used within the spread is the one most representative of fair value in the circumstances.

The mid-market price may be used, the standard permitting mid-market pricing or other market conventions.

The standard requires the mid-market price for all measurements, which removes the need for judgement.

A market convention may guide the choice of price within the spread, without the standard requiring it.