Calculate the net proceeds of selling the asset

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Company A holds an asset that is traded in two different markets. Company A has access to both markets. Information about both markets is as follows:

                                          Market A                   Market B

Market volume (units)        6000                    3000

Price                                40                            35

Transportation costs            83

Transaction costs      41

In accordance with IFRS 13, answer the following questions:

Question 1: Calculate the net proceeds of selling the asset in both markets.

Question 2: Identify the principal market and the most advantageous market.

Question 3: Determine the fair value of the asset.

Question 4: Assume that Company A trades 2000 units in Market A and 3000 units in Market B. Explain whether this information makes a difference in the determination of the principal and most advantageous markets.

Question 5: Company A plans to revalue its property, plant and equipment. Determine an appropriate valuation technique that Company A should use when measuring the fair value of its property, plant and equipment. As part of your answer you should identify each input in accordance with the fair value hierarchy.

Reference no: EM132531913

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