In the appraisal method, who determines fair market value?
ACompany shareholders
BThe district tax officer
CTechnical experts
DThe lending bankers
Answer & Solution
Correct answer: C. Technical experts
Technical experts examine the assets in detail to determine their fair market value.
Keep practising Ind AS 2 Inventories and Ind AS 16 Property, Plant and Equipment
Browse all Ind AS 2 Inventories and Ind AS 16 Property, Plant and Equipment questions for CA Final, or explore more Financialreporting topics.
Related questions
How do fixed assets differ from inventory in holding purpose?Why can depreciation on historical cost alone lead to excessive dividends when prices riseIn indexation, what is applied to the cost of assets?Why might fixed assets be revalued?Which terms apply to natural resources and intangibles respectively?Which event may indicate that an asset is impaired?How is depreciation treated in the cash flow statement?Which is one of the four inputs used to compute depreciation?