Exam: Intermediate Financial Accounting (ACCT20002_2023_SUM) Q1 Fair Value 5 Points Taperium Council, a Government Council, is currently facing a budget deficit. To improve its budget, it embarks on a concerted tourism campaign. In anticipation of an expected increase in tourists and domestic visitors to its locality, Taperium Council contacts developers to build hotels. Taperium Counci contributes land to a developer, BuildUP Ltd, who will build a hotel on the land. Taperium Council specifies that whilst BuildUP Ltd owns the land and hotel, the hotel must continue to be located on the land in perpetuity. Construction of the 5 -star hotel by BuildUP is completed and the hotel is always fully booked as tourists and domestic visitors flock to the locality. BuildUP Ltd now wants to measure the land and hotel at fair value. An analysis of the contractual agreement pertaining to the transfer of the land by Taperium Council determines that the restriction imposed by Taperium Council does not apply to market participants who might purchase the land and hotel. Further analysis reveals that BuildUP Ltd is not prevented from selling the land and hotel. Without the restriction on the use of the land, its land could be used for residential development. In addition, the land is also subject to an easement. The easement grants a utility company the legal right to run power lines across the land donated by Taperium Council. Required: Discuss how BuildUP Ltd should apply AASB 13 Fair Value Measurement to measure the fair value of its land and hotel