AASB 13 Fair Value Measurement allows the use of which of the following as a practical expedient when measuring the fair value of financial instruments where there are both bid and ask prices?
A)The bid price
B)The ask price
C)The bid-ask spread
D)The mid-market price

Question

Quizplus · Accepted Answer

AASB 13 Fair Value Measurement allows the use of the mid-market price as a practical expedient when measuring the fair value of financial instruments where there are both bid and ask prices. This is because the mid-market price represents a fair value estimate between the bid and ask prices.

AASB 13 Fair Value Measurement Allows the Use of Which