Which of the following is not a characteristic of a market participant under IFRS 13?
A) Buyers and sellers that are able to enter into a transaction for the asset or liability;
B) Buyers and sellers that are willing to enter into a transaction for the asset or liability;
C) Buyers and sellers that are dependent on each other;
D) Buyers and sellers that are knowledgeable, having a reasonable understanding about the asset or liability and the transaction using all available information.

Question

Quizplus · Accepted Answer

The characteristic that is not mentioned as a requirement for a market participant under IFRS 13 is that they are dependent on each other. While market participants should be able to enter into a transaction (A), willing to enter into a transaction (B), and knowledgeable about the asset or liability and transaction (D), they do not need to be dependent on each other. In fact, more independent market participants often lead to more efficient market pricing.

Which of the Following Is Not a Characteristic of a Market