The use of the stand-alone valuation premise is appropriate when the market participant to whom the asset is being transferred would use the asset in conjunction with other assets.

Question

Quizplus · Accepted Answer

The use of the stand-alone valuation premise is appropriate when the asset is being transferred on a standalone basis, not in conjunction with other assets. For the situation where the market participant would use the asset in conjunction with other assets, a different valuation premise would be more appropriate, such as the premise of value in use.

The Use of the Stand-Alone Valuation Premise Is Appropriate When