ABC Ltd measures its investment in CD shares at fair value. CDF shares are listed...
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ABC Ltd measures its investment in CD shares at fair value. CDF shares are listed and actively traded on the stock exchange. Which one af the following valuations should ABC use to measure its investment in shares in CDF in its financial statements al 30 June 2018?
- The closing price of CD shares on the stock market at 30 June 2018.
- The average price of CD shares on the stock market from 1 June 2018 to 30 June 2018.
- An estimate derived from a model that uses observable industry growth rates and past cash flows.
> An estimate derived from a model that uses ABC s estimates of CDFs future profits and required rate of return.
ABC Ltd measures its investment in CD shares at fair value. CDF shares are listed and actively traded on the stock exchange. Which one af the following valuations should ABC use to measure its investment in shares in CDF in its financial statements al 30 June 2018?
- The closing price of CD shares on the stock market at 30 June 2018.
- The average price of CD shares on the stock market from 1 June 2018 to 30 June 2018.
- An estimate derived from a model that uses observable industry growth rates and past cash flows.
> An estimate derived from a model that uses ABC s estimates of CDFs future profits and required rate of return.
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