Price determination – NBC Institute

CR – May 2017 – L3 – Q6 – Fair Value Measurement (IFRS 13)

Identify the fair value hierarchies under IFRS 13 and distinguish between principal and most advantageous markets.

Question

The International Accounting Standards Board (IASB) aims at enhancing the guidance available for assessing fair value in order to increase consistency and comparability in fair value measurements and related disclosures. To this end, fair value measurements are categorized into a three-level hierarchy, based on the type of inputs to the valuation techniques used in IFRS 13. IFRS uses the terms principal or most advantageous market.

Required:

(i) What are the fair value hierarchies under IFRS 13? (3 Marks)

(ii) Distinguish between the principal and most advantageous market and state how price is determined in the principal market taking into consideration transport and transaction costs. (5 Marks)

Answer

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Tags: Fair Value, Hierarchy, IFRS 13, Market, Price determination
Level: Level 3

Topic: Fair Value Measurement (IFRS 13)

BMIS – March 2024 – L1 – Q2c – Competitive forces and markets

Explain characteristics of a perfectly competitive market and how a monopolist can maximize revenue by choosing either price or quantity.

Question

A perfectly competitive market has been described as one in which buyers and sellers have no option but to take the price determined by the forces in the market. Whereas prices are determined by the forces in a perfectly competitive market, a monopolist firm can maximise its revenue by doing one of two things – choose price or quantity.

Required: i) Explain THREE (3) characteristics of a perfectly competitive market. (3 marks) ii) Explain the statement in bold. (3 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Economic theory, Market structure, Monopoly, Perfect competition, Price determination
Level: Level 1

Topic: Competitive forces and markets
Series: MAR 2024

CR – May 2017 – L3 – Q6 – Fair Value Measurement (IFRS 13)

Identify the fair value hierarchies under IFRS 13 and distinguish between principal and most advantageous markets.

Question

Required:

(i) What are the fair value hierarchies under IFRS 13? (3 Marks)

(ii) Distinguish between the principal and most advantageous market and state how price is determined in the principal market taking into consideration transport and transaction costs. (5 Marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Fair Value, Hierarchy, IFRS 13, Market, Price determination
Level: Level 3

Topic: Fair Value Measurement (IFRS 13)

BMIS – March 2024 – L1 – Q2c – Competitive forces and markets

Explain characteristics of a perfectly competitive market and how a monopolist can maximize revenue by choosing either price or quantity.

Question

Required: i) Explain THREE (3) characteristics of a perfectly competitive market. (3 marks) ii) Explain the statement in bold. (3 marks)

Answer

Find Related Questions by Tags, levels, etc.

Tags: Economic theory, Market structure, Monopoly, Perfect competition, Price determination
Level: Level 1

Topic: Competitive forces and markets
Series: MAR 2024

Question Tag: Price determination

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CR – May 2017 – L3 – Q6 – Fair Value Measurement (IFRS 13)

Identify the fair value hierarchies under IFRS 13 and distinguish between principal and most advantageous markets.

BMIS – March 2024 – L1 – Q2c – Competitive forces and markets

Explain characteristics of a perfectly competitive market and how a monopolist can maximize revenue by choosing either price or quantity.

CR – May 2017 – L3 – Q6 – Fair Value Measurement (IFRS 13)

Identify the fair value hierarchies under IFRS 13 and distinguish between principal and most advantageous markets.

BMIS – March 2024 – L1 – Q2c – Competitive forces and markets

Explain characteristics of a perfectly competitive market and how a monopolist can maximize revenue by choosing either price or quantity.

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CR – May 2017 – L3 – Q6 – Fair Value Measurement (IFRS 13)

Identify the fair value hierarchies under IFRS 13 and distinguish between principal and most advantageous markets.

You're reporting an error for "CR – May 2017 – L3 – Q6 – Fair Value Measurement (IFRS 13)"

BMIS – March 2024 – L1 – Q2c – Competitive forces and markets

Explain characteristics of a perfectly competitive market and how a monopolist can maximize revenue by choosing either price or quantity.

You're reporting an error for "BMIS – March 2024 – L1 – Q2c – Competitive forces and markets"

CR – May 2017 – L3 – Q6 – Fair Value Measurement (IFRS 13)

Identify the fair value hierarchies under IFRS 13 and distinguish between principal and most advantageous markets.

You're reporting an error for "CR – May 2017 – L3 – Q6 – Fair Value Measurement (IFRS 13)"

BMIS – March 2024 – L1 – Q2c – Competitive forces and markets

Explain characteristics of a perfectly competitive market and how a monopolist can maximize revenue by choosing either price or quantity.

You're reporting an error for "BMIS – March 2024 – L1 – Q2c – Competitive forces and markets"

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