IFRS 13 Fair Value Measurement accounting standard outlines the guidelines pertaining to the measurement of fair value of assets and liabilities. Even though the standard has been implemented, it is still subjected to ongoing debates.

Question

ABC planted 250 teak trees on a piece of land in guilin. The trees take approximately 30 years to mature. Upon maturity, the trees can be cut down and sold. The average age of the tree on the land is 16 years at the end of the reporting period. The current use of the land is presumed to be its highest and best value. Based on the above situation, ABC determine the fair value of the teak trees? (5 marks)