Which of the Following Best Describes the Role Played by the 'Income

Multiple Choice

Which of the following best describes the role played by the 'income approach' in determining an asset's fair value

A) it is the method required by AASB 116 to estimate fair value in the absence of an active, liquid market
B) it refers to the process of comparing an asset's fair value to the period profit or loss (sometimes called income or net income)
C) it is another term for net present value, and in some circumstances NPV is the best estimator of fair value
D) it has no formal role in the current AASB 116, although it was mentioned in the subsequently withdrawn Australian implementation guidance