Stand alone asset or group of assets The level at which an asset or liability

Stand alone asset or group of assets the level at

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Stand-alone asset or group of assets ? The level at which an asset or liability is aggregated or disaggregated for financial reporting purposes. (e.g. Business combination as group of assets). Are there any restrictions on sale or use of the asset or transfer of the liability? What is the condition of the asset?
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What is the location of the asset? A further consideration relates to whether or not the size of an entity's holding can be considered. E.g. Shares in a “block” of 100 = use the price to sell a single share or the block of 100 shares? In general, the price per unit would be expected to fall if a large volume of the units were being sold as a package. This is referred to as a ‘block discount’ arising because the volume is a ‘blockage factor’. Paragraph 69 prohibits the use of a blockage factor, arguing that a blockage factor is not relevant. As noted in paragraph BC42 of the Basis for Conclusions on IFRS 13, the transaction being considered between the market participants is a hypothetical transaction, and as such, the determination of fair value does not consider any entity-specific factors that might influence the transaction. The size of an entity's holding is entity-specific. Therefore, fair value must be measured based on the unit of account of the asset or liability being measured . In addition to the above, for non-financial assets, an entity must consider the highest and best use of the asset and the valuation premise. 3.3.2. What is the principal (or most advantageous) market for the asset? When measuring fair value, an entity is required to assume that the hypothetical transaction to sell the asset or transfer the liability takes place either (paragraph 16): - In the principal market for the asset or liability; - In the absence of a principal market, in the most advantageous market for the asset or liability. Principal market = The market with the greatest volume and level of activity for the asset or liability. Most advantageous market = The market that offers the highest return when selling an asset or requires the lowest payment when transferring a liability. The principal (or most advantageous) market is considered from the perspective of the reporting entity, which means that it could be different for different entities. An entity may also be able to access different markets at different points of time — that is, not all markets are always accessible to the entity. The principal (or most advantageous) market must be one that the entity can access at the measurement date. 3.3.3. Who are the market participants? = buyers and sellers in the principal (or most advantageous) market for the asset or liability. IFRS 13 assumes they have all of the following characteristics: - They are independent from each other (not-related parties) hypothetical transaction is assumed to take place between market participants at the measurement date, not between the reporting entity and another market participant. While market participants are not
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