Question 1

Under IFRS the price in the principal or most advantageous market price may be adjusted for transactions costs.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is NOT a factor in 'Highest best use'?

Accepted Answer

A)  physically possible
B)  financially feasible
C)  legally permissible
D)  economically sound.E) B) and C)
F) A) and C)

Question 3

IFRS 13 seeks to mitigate the problems associated with measurement under level 3 of the hierarchy by;

Accepted Answer

A)  means of estimation
B)  means of disclosure
C)  means of reference to indices
D)  by means of reference to averagesE) All of the above
F) A) and B) B

Question 4

Until 2011,the FASB definition of fair value was different from the IASB valuation in that it was;

Accepted Answer

A)  explicitly based solely on current replacement cost.
B)  explicitly based solely on net realisable value.
C)  explicitly based on an exit concept.
D)  explicitly based only on deprival value.E) B) and C)
F) A) and D)

Question 5

IFRS 13 specifies both how and when fair value should be measured and disclosed.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is NOT a recognised observable input in the calculation of fair value?

Accepted Answer

A)  market approach
B)  theoretical approach
C)  cost approach
D)  income approachE) C) and D)
F) B) and C)

Question 7

Fair value is a market based exit price.

Accepted Answer

A) True 
 B)False

Question 8

The IASB insists that fair value is not an entity based value.

Accepted Answer

A) True 
 B)False

Question 9

IFRS 13 imposes the measurement of fair value on entities.

Accepted Answer

A) True 
 B)False  False

Question 10

In the general case where acquisition and disposal costs are not nil;

Accepted Answer

A) .NRV = Fair value B) NRV = current replacement cost C) NRV > fair value > current replacement cost D) NRV < fair value < current replacement costE) None of the above F) A) and D) D

Exam 8: Fair Values

Under IFRS the price in the principal or most advantageous market price may be adjusted for transactions costs.

Correct Answer
verified

Which of the following is NOT a factor in 'Highest best use'?

Correct Answer
verified

IFRS 13 seeks to mitigate the problems associated with measurement under level 3 of the hierarchy by;

Correct Answer
verified
B

Until 2011,the FASB definition of fair value was different from the IASB valuation in that it was;

Correct Answer
verified

IFRS 13 specifies both how and when fair value should be measured and disclosed.

Correct Answer
verified

Which of the following is NOT a recognised observable input in the calculation of fair value?

Correct Answer
verified

Fair value is a market based exit price.

Correct Answer
verified

The IASB insists that fair value is not an entity based value.

Correct Answer
verified

IFRS 13 imposes the measurement of fair value on entities.

Correct Answer
verified
False

In the general case where acquisition and disposal costs are not nil;

Correct Answer
verified
D

Exam 8: Fair Values

Under IFRS the price in the principal or most advantageous market price may be adjusted for transactions costs.

Correct AnswerverifiedShow Answer

Which of the following is NOT a factor in 'Highest best use'?

Correct AnswerverifiedShow Answer

IFRS 13 seeks to mitigate the problems associated with measurement under level 3 of the hierarchy by;

Correct AnswerverifiedB

Until 2011,the FASB definition of fair value was different from the IASB valuation in that it was;

Correct AnswerverifiedShow Answer

IFRS 13 specifies both how and when fair value should be measured and disclosed.

Correct AnswerverifiedShow Answer

Which of the following is NOT a recognised observable input in the calculation of fair value?

Correct AnswerverifiedShow Answer

Fair value is a market based exit price.

Correct AnswerverifiedShow Answer

The IASB insists that fair value is not an entity based value.

Correct AnswerverifiedShow Answer

IFRS 13 imposes the measurement of fair value on entities.

Correct AnswerverifiedFalse

In the general case where acquisition and disposal costs are not nil;

Correct AnswerverifiedD

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
B

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
False

Correct Answer
verified
D