【正确答案】IFRS 13 says that fair value is an exit price in the principal market, which is the market with the highest volume and levelof activity. It is not determined based on the volume or level of activity of the reporting entity’s transactions in a particularmarket. Once the accessible markets are identified, market-based volume and activity determines the principal market. Thereis a presumption that the principal market is the one in which the entity would normally enter into a transaction to sell theasset or transfer the liability, unless there is evidence to the contrary. In practice, an entity would first consider the markets itcan access. In the absence of a principal market, it is assumed that the transaction would occur in the most advantageousmarket. This is the market which would maximise the amount which would be received to sell an asset or minimise theamount which would be paid to transfer a liability, taking into consideration transport and transaction costs. In either case,the entity must have access to the market on the measurement date. Although an entity must be able to access the marketat the measurement date, IFRS 13 does not require an entity to be able to sell the particular asset or transfer the particularliability on that date. If there is a principal market for the asset or liability, the fair value measurement represents the price inthat market at the measurement date regardless of whether that price is directly observable or estimated using anothervaluation technique and even if the price in a different market is potentially more advantageous. The principal (or most advantageous) market price for the same asset or liability might be different for different entities andtherefore, the principal (or most advantageous) market is considered from the entity’s perspective which may result in differentprices for the same asset. In Yanong’s case, Asia would be the principal market as this is the market in which the majority of transactions for the vehiclesoccur. As such, the fair value of the 150 vehicles would be $5,595,000 ($38,000 –$700 = $37,300 x 150). Actual salesof the vehicles in either Europe or Africa would result in a gain or loss to Yanong when compared with the fair value, i.e.$37,300. The most advantageous market would be Europe where a net price of $39,100 (after all costs) would be gainedby selling there and the number of vehicles sold in this market by Yanong is at its highest. Yanong would therefore utilise thefair value calculated by reference to the Asian market as this is the principal market. The IASB decided to prioritise the price in the most liquid market (i.e. the principal market) as this market provides the mostreliable price to determine fair value and also serves to increase consistency among reporting entities. IFRS 13 makes it clear that the price used to measure fair value must not be adjusted for transaction costs, but shouldconsider transportation costs. Yanong has currently deducted transaction costs in its valuation of the vehicles. Transactioncosts are not deemed to be a characteristic of an asset or a liability but they are specific to a transaction and will differdepending on how an entity enters into a transaction. While not deducted from fair value, an entity considers transaction costsin the context of determining the most advantageous market because the entity is seeking to determine the market whichwould maximise the net amount which would be received for the asset.

【正确答案】Where reliable market-based prices or values are not available for a biological asset in its present location and condition, fairvalue should be measured using a valuation technique. Relevant observable inputs should be maximised whilst unobservableinputs should be minimised (IFRS 13 Fair Value Measurement). An appropriate valuation technique would be the presentvalue of expected net cash flows from the asset, discounted at a current market-based rate. In the measurement of fair valueof growing crops, a notional cash flow expense should be included for the ‘rent’ of the land where it is owned in order thatthe value is comparable to an entity which rents its land. The fair value of the biological asset is separate from the value ofthe land on which it grows.

【正确答案】IFRS 13 applies when another IFRS requires or permits fair value measurements or disclosures about fair valuemeasurements (and measurements, such as fair value less costs to sell, based on fair value or disclosures about thosemeasurements). IFRS 13 specifically excludes transactions covered by certain other standards including share-based paymenttransactions within the scope of IFRS 2 Share-based Paymentand leasing transactions within the scope of IAS 17 Leases. Thus share-based payment transactions are scoped out of IFRS 13. For cash settled share-based payment transactions, the fair value of the liability is measured in accordance with IFRS 2initially, at each reporting date and at the date of settlement using an option pricing model. The measurement reflects allconditions and outcomes on a weighted average basis, unlike equity settled transactions. Any changes in fair value arerecognised in profit or loss in the period. Therefore, the SARs would be accounted for as follows:

【正确答案】A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economicbenefits by using the asset in its highest and best use or by selling it to another market participant who would use the assetin its highest and best use. The maximum value of a non-financial asset may arise from its use in combination with otherassets or by itself. IFRS 13 requires the entity to consider uses which are physically possible, legally permissible andfinancially feasible. The use must not be legally prohibited. For example, if the land is protected in some way by law and achange of law is required, then it cannot be the highest and best use of the land. In this case, Yanong’s land for residentialdevelopment would only require approval from the regulatory authority and that approval seems to be possible, then thisalternative use could be deemed to be legally permissible. Market participants would consider the probability, extent and timing of the approval which may be required in assessing whether a change in the legal use of the non-financial asset could be obtained. Yanong would need to have sufficient evidence to support its assumption about the potential for an alternative use, particularlyin light of IFRS 13’s presumption that the highest and best use is an asset’s current use. Yanong’s belief that planningpermission was possible is unlikely to be sufficient evidence that the change of use is legally permissible. However, the factthe government has indicated that more agricultural land should be released for residential purposes may provide additionalevidence as to the likelihood that the land being measured should be based upon residential value. Yanong would need toprove that market participants would consider residential use of the land to be legally permissible. Provided there is sufficientevidence to support these assertions, alternative uses, for example, commercial development which would enable marketparticipants to maximise value, should be considered, but a search for potential alternative uses need not be exhaustive. Inaddition, any costs to transform the land, for example, obtaining planning permission or converting the land to its alternativeuse, and profit expectations from a market participant’s perspective should also be considered in the fair value measurement. If there are multiple types of market participants who would use the asset differently, these alternative scenarios must beconsidered before concluding on the asset’s highest and best use. It appears that Yanong is not certain about what constitutesthe highest and best use and therefore IFRS 13’s presumption that the highest and best use is an asset’s current use appearsto be valid at this stage.