Question
DeltaPay Ltd holds an asset that is traded in three different markets: American Market, Canadian Market and Hong Kong Market. Some information gathered in relation
DeltaPay Ltd holds an asset that is traded in three different markets: American Market, Canadian Market and Hong Kong Market. Some information gathered in relation to these three markets is as follows:
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| American Market | Canadian Market | Hong Kong Market |
| Per-unit information |
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|
|
| Annual Volume | 30 000 | 12 000 | 6 000 |
| Price (per unit) | $100 | $96 | $106 |
| Transport cost (per unit) | $6 | $6 | $8 |
| Transaction cost (per unit) | $2 | $4 | $4 |
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|
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Required:
Explain which market is the most advantageous market for this asset and what would be the fair value of this asset in accordance with AASB 13 Fair Value Measurement. Justify your answers by showing the calculations.
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Financial Accounting Tools For Business Decision Making
Authors: Paul D. Kimmel
4th Canadian Edition
0470155353, 978-0470155356
