The "principal market" as defined in AASB 13 Fair Value Measurement is the market that maximises the amount that could be received to sell the asset or minimises the amount that would be required to be paid to transfer the liability,after considering transactions costs and transportation costs.

Question

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The "principal market" in AASB 13 is the market with the greatest volume and level of activity for the asset or liability, not necessarily the one that maximizes or minimizes amounts after transaction and transportation costs.

The "Principal Market" as Defined in AASB 13 Fair Value