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CMA Final · Corporate Financial Reporting · Valuation of Shares (including Determination of Goodwill)

Zenith Realty needs inputs to value a commercial building. Buyers and sellers are matched by agents who do not hold inventory or trade for their own account, and each party is typically unaware of the other's price requirements. Which type of market does this describe under Ind AS 113?

It is a brokered market. Under Ind AS 113, brokers match buyers and sellers without holding inventory or trading for their own account, and parties typically do not know each other's price requirements. Commercial and residential real estate markets are examples, unlike dealer markets where dealers trade from inventory.

  1. AExchange market
  2. BDealer market
  3. CBrokered marketCorrect
  4. DPrincipal-to-principal market

Explanation

In a brokered market brokers match buyers with sellers but do not use their own capital to hold inventory. Each party is typically unaware of the other's price requirements. Commercial and residential real estate markets are given as examples. Dealers, by contrast, trade for their own account.

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