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P. 13
IFRS 13
Elements of fair value measurement
Orderly transaction – Example
Scenario:
• Bekele holds an investment of 1 500 unlisted shares in
Kiplagat Ltd. During June 20.12 an unrelated party sold
its holding of Kiplagat Ltd shares for R2 million (R100 per
share). Other transactions in the shares of Kiplagat Ltd
during the reporting period indicate that the shares of
the seller would have been sold for at least R4 million in
one of these transactions. Bekele investigated and
determined that the seller accepted the first offer that it
received and that the seller’s creditors shortly
afterwards applied for the company’s liquidation.
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