Asked by Magnus Biancoma835 on Jul 29, 2024
Verified
Valuation techniques that reflect the amount that would be required currently to replace the service capacity of an asset is an example of:
A) the fair value approach.
B) the income approach.
C) the cost approach.
D) the market approach.
Valuation Techniques
Methods applied to estimate the fair value of assets and liabilities, which can include market, income, and cost approaches.
Service Capacity
The total amount of service activity or output that a company can provide in a given period based on its current resources.
- Comprehend the evaluation techniques stipulated by AASB 13.
Verified Answer
SS
sumit sehrawatJul 30, 2024
Final Answer :
C
Explanation :
The cost approach estimates the value of an asset by determining the cost to replace the service capacity or functionality of the asset. This approach is often used for valuing assets that are not frequently bought and sold in the market or have unique characteristics that make it difficult to use other valuation methods.
Learning Objectives
- Comprehend the evaluation techniques stipulated by AASB 13.
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