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10 Cards in this Set
- Front
- Back
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Define Fair Value |
"This standard defines fair value as the price that would be received to sell an asset or paid to transfer liability in an orderly transaction between market participants at the measurement date. |
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How is Fair value used in valuation |
An entity shall measure the fair value of an asset or a liability using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest. |
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Highest and Best Use definition |
Highest and best use means the use maximises its potential and would produce the highest value and must be physically possible, legally permissible and financially feasible. |
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Highest and best use approaches |
Market Approach Cost approach |
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what is the market approach |
Market approach which provides an indication of value by comparing the subject asset with identical or similar assets for which price information is available |
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Cost approach definition |
Cost approach is a valuation based on the economic principle that a buyer will pay no more for an asset than the cost to obtain an asset of equal utility, whether by purchase or by construction. |
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Cost approach technique |
Cost approach is applied by comparing a property with things like construction, design, size and rooms for the value of the property |
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Cost approach technique |
Cost approach is applied by comparing a property with things like construction, design, size and rooms for the value of the property |
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market approach technique |
Market approach is conducted by comparing recent transaction sales of property that are similar to comparison of said property |
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Taxable Income |
Assessable Income - Allowable Deductions EQUALS Taxable Income |
