Markets
In this lesson, you'll learn how to identify and apply the correct market for fair value measurement under IFRS standards—a key concept for Financial Reporting and Strategic Business Reporting papers.
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In this lesson
- 0:00 Principal and most advantageous markets
- 0:24 Identifying the principal market
- 0:37 Using the most advantageous market
- 1:05 Fair value calculation worked example
- 2:01 Excluding transaction costs from fair value
About this lesson
You'll explore the two market options: the principal market (where you have the greatest volume and activity) and the most advantageous market (used when no principal market exists). The lesson walks you through the treatment of transport and transaction costs in each scenario, then applies these rules to a worked example comparing two active markets with different selling prices and cost structures. Understanding when to use each market and how to handle costs correctly is essential for accurate fair value calculations in your exam.
Duration: 3m
Transcript
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