Page 15 - PowerPoint Presentation
P. 15
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.
