Fair value is defined in AASB 116 Property, Plant and Equipment as the amount for which an asset can be exchanged between knowledgeable willing parties in an arm's length transaction.

Question

Quizplus · Accepted Answer

Fair value is defined in AASB 13 Fair Value Measurement, not AASB 116. AASB 116 deals with the accounting for property, plant, and equipment, including their recognition, measurement, and disclosure requirements, but the specific definition and guidance on fair value measurement are provided in AASB 13.

Fair Value Is Defined in AASB 116 Property, Plant and Equipment