Fair value measurement

BTrees Ltd has owned a banana plantation in far North Queensland for the past 100 years. It has been a family run business and the land on which it grows bananas has recently been found to have a high amount of coal deposits. BTrees Ltd is extremely climate conscious and does not support the use of coal. The price of bananas is quite volatile, and farming is subject to adverse climate changes. Market statistics show that there have not been many transactions for sale of banana plantation properties. However, there is an active market for sale of mining properties.

Recently BTrees Ltd received an attractive offer from a mining explorer for its land. BTrees Ltd has rejected this offer as it has no interest in selling its land to any entity with mining interests.

REQUIRED:

Describe how BTrees Ltd would determine the fair value of its land and banana plantation in accordance with AASB 13 Fair Value Measurement.