Q1 Fair Value Measurement

An entity acquired in a business combination a machine that is held and

used in its operations. The machine was initially acquired from a supplier

and was then customised by the entity for its own use. The highest and best

use of the machine is in combination with other assets as a group.

Required:

Discuss about the valuation techniques that could be used to determine the

fair value of the machine and the level of inputs used for each possible

valuation technique, in accordance with AASB 13 Fair Value Measurement.

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