Section 96 - AASB 2011-8 - Amendments to Australian Accounting Standards arising from AASB 13 - September 2011 - Paragraphs 8, 15 and 16 are amended as follows (new text is underlined and deleted text is struck through):

96Paragraphs 8, 15 and 16 are amended as follows (new text is underlined and deleted text is struck through):

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Turn the raw legal text into a practical explanation grounded in AASB 2011-8 - Amendments to Australian Accounting Standards arising from AASB 13 - September 2011.

96 Paragraphs 8, 15 and 16 are amended as follows (new text is underlined and deleted text is struck through):

8 The following terms are used in this Standard with the meanings specified.

An active market is a market where all the following conditions exist:

(a) the items traded within the market are homogeneous;

…

Fair value is the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm’s length transaction price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. (See AASB 13 Fair Value Measurement.)

15 The determination of fair value measurement of for a biological asset or agricultural produce may be facilitated by grouping biological assets or agricultural produce according to significant attributes; for example, by age or quality. …

16 Entities often enter into contracts to sell their biological assets or agricultural produce at a future date. Contract prices are not necessarily relevant in determining measuring fair value, because fair value reflects the current market conditions in which a willing buyer and seller market participant buyers and sellers would enter into a transaction. …