$5.$ Osino Ltd has just acquired a company, which comprises a farming and a mining business. Osino Ltd wishes advice on how to place a fair value on some of the asset acquired.

One of the asset is piece of land, which is currently used for farming. The fair value of the land if used for farming is GH$5$ million. If the land is used for farming purposes, a tax credit arises annually, which is based upon the lower of $15\%$ of the fair value of the land or GH$500,000$ at the current tax rate. The current tax rate in the jurisdiction is $20\%.$

Osino Ltd has determined that market participants would consider that the land could have an alternative use for residential purposes. The fair value of the land for residential purposes before the associated costs id thought to be GH$7\mathrm{.}4$ million. In order to transform the land from farming to residential use, there would be a legal costs of GH$200,000,$ a viability analysis cost of GH$300,000$ and the cost of demolition of the farm buildings of GH$100,000.$

Additionally, permission for residential use has not been formally given by the legal authority and because of this market participant have indicated that the fair value of the land, after the above costs. Would be discounted by $20\%$ because of the risk if not obtaining a planning permission. In addition, Osino Ltd has acquired the brand name associated with the produce from the farm.

Osino Ltd has decided to discontinue the brand on the assumption that it will gain increased revenues from its own brands. Osino Ltd has determined that if it ceases to use the brand, then the indirect benefits will be GH$20$ million. If it continues to use the brand, then the direct benefit will be GH$17$ million.

Required

Discuss the way in which Osino Ltd should measure the fair value of the above assets with reference to the principles of IFRS $13$ Fair Value Measurement