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1. Shining Gold Plc deals with gold metals which it trades on different markets across the globe without a principal market. The following information relates to three markets where Shining Gold Plc traded its gold metals in 2020:

Volume (kgs) Trades per month Price/kg Transport costs Possible FV Transaction costs Net Proceeds (NRV) COSDAX 30,000 200 1,000 (50) 950 (55) 895 BODEX 25,000 120 1,060 (80) 980 (70) 910 METAX 20,000 100 1,075 (70) 1,005 (105) 900 [CONTINUED] REQUIRED: (1) Distinguish between principal market and most advantageous market in the context of fair value. (ii) From the above table, identify the most advantageous market. Provide the reasons for your answer (iii) Which market should be used to calculate the fair value and why? (iv) Which is the most profitable market and why? (10 marks) (b) Royal Logistics Limited is a German company making up its balance sheet on 31 March. It acquired 2,000 shares and 5,000 shares in United Alliance Plc at 15/share and 21/share on 10 April 2020 and 15 December 2020, respectively. The shares of United Alliance Plc were being traded on the Euronext Paris stock market closing at 17/share and 19/share on 31 December 2020 and 31 March 2021, respectively. The company has no intention of selling the shares soon. REQUIRED: () Calculate the fair value and unrealised gain/loss at the financial year-end. State whether you measured the asset at level 1, 2 or 3 and why. (5 marks) (c) Blueberry Ltd with 31 August financial year end invested in an automated plant on 1 September 2014, which was carried in the book at cost. The company has decided to value the plant at fair value on its balance sheet date on 31 August 2020. The plant has an estimated life of 10 years and it is depreciated on a straight-line basis over its useful economic life from the date of its purchase. The machine is expected to generate 800,000 cash flows each year during the remaining period of its useful life. It was estimated at the time of purchase that the plant will have a residual value of 80,000 at the end of its useful life. The company's cost of capital is 12% per annum. Currently, there is no active market BE130-6-FY/6 for used (second-hand) plants and no similar plants against which the fair value could be compared. The finance director gave the accumulated depreciation figure as 3m. REQUIRED: (0) Calculate the annual depreciation charge (ii) Determine the original cost of the plant (iii) What is the historical net book value? (iv) Calculate the fair value and unrealised gain/loss at the financial year-end. Also, state whether you measured the asset at hierarchy level 1, 2 or 3 and why. (v) State any TWO (2) measurement disclosures that should be made based on your fair value method to value this asset? (10 marks) (TOTAL: 25 MARKS] QUESTION FOUR a) At 1 January 2020 the fair value of the assets of a defined benefit plan of Capital Risk Advisors were valued at 2,200,000 and the present value of the defined

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