Questions 1:

The use of fair value to measure assets and liabilities inevitably results in

fluctuations in profit or loss, which can be large. Users of financial statements,

therefore, need information that clearly explains the source of these fluctuations -

whether they are realised or unrealised, based on objective or subjective

information, real transactions and market activity or estimates.

Discuss how IFRS 13 attempts to overcome these issues when providing information to users

of financial statements.