Page 16 - SBR Integrated Workbook STUDENT S18-J19

Chapter 1

Example 2

Markets

Ware has access to two markets when selling its inventories – Country A and
Country B. Information about these markets is provided below:

Country A Country B
Total sales (units (m)) 16 13
Sales made by Ware (units (m)) 6 7
Sales price per unit ($) 9 10
Transaction costs per unit ($) 4 3
Transport costs per unit ($) 1 1

With respect to IFRS 13 Fair Value Measurement:

 Which market is the principal market?

 Which market is the most advantageous market?

 What is the fair value of one unit of Ware’s inventory?

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