Dyna Ltd has acquired land in a business combination. The land is currently developed for industrial use as a site for a factory. The current use of land is presumed to be its highest and vest use unless market or other factors suggest a different use.

Nearby sites have recently been developed for residential use as sites for high-rise apartment buildings. On the basis of that development and recent zoning and other changes to facilitate that development, Dyna Ltd determines that the land currently used as a site for a factory could be developed as a site for residential use (i.e. for high rise apartment buildings) because market participants would take into account the potential to develop the site for residential use when pricing the land.

 

Required:

Explain how the highest and best use of the land would be determined in accordance with IFRS 13 / AASB 13 Fair Value Measurement

Answer rating: 100% (QA)

IFRS 13 Says that the fair value of Nonfinancial asset should be measured at its highest and Bes... View the full answer