how do we account provision for unquoted shares?

Question

how do we provide provision for unquoted shares?

Comments

please elaborate yours question

Answer 1

greetings,

i believe that relevant standard here is IFRS 13 - Fair Value Measurement, and unquoted shares can be measured by :

* quoted prices for similar assets or liabilities in active markets.

* quoted prices for identical or similar assets or liabilities in markets that are not active.

* inputs other than quoted prices that are observable for the asset or liability.

Answer 2

as there is no active market of these shares and prices are not available,in practice i have seen that people record such shares at cost.