Question 1

Which of the following is an example of a Level 3 input,according to the fair value hierarchy?

Accepted Answer

A)  Quoted stock prices 
B)  Quoted prices for similar assets in active markets 
C)  Quoted prices in non-active markets 
D)  Future net cash flows used to value a business 
A)  Quoted stock prices 
B)  Quoted prices for similar assets in active markets 
C)  Quoted prices in non-active markets 
D)  Future net cash flows used to value a business

Question 2

Which of the following is not a characteristic of a market participant?

Accepted Answer

A)  Knowledgeable 
B)  Ethical 
C)  Independent 
D)  Willing to transact 
A)  Knowledgeable 
B)  Ethical 
C)  Independent 
D)  Willing to transact

Question 3

On which type of transaction is the measurement of fair value based?

Accepted Answer

A)  Hypothetical 
B)  Actual 
C)  Anticipated 
D)  Standard 
A)  Hypothetical 
B)  Actual 
C)  Anticipated 
D)  Standard

Question 4

Which measurement is utilised when non-financial assets are assessed for fair value purposes?

Accepted Answer

A)  Highest and best use 
B)  Historical cost 
C)  Lower-of-cost-or-market 
D)  Average use 
A)  Highest and best use 
B)  Historical cost 
C)  Lower-of-cost-or-market 
D)  Average use

Question 5

What is the purpose of AASB 13,'Fair Value Measurement'?

Accepted Answer

A)  What to measure as fair value 
B)  When to disclose fair value measurements 
C)  How to measure fair value 
D)  Determining why fair value measurements are appropriate 
A)  What to measure as fair value 
B)  When to disclose fair value measurements 
C)  How to measure fair value 
D)  Determining why fair value measurements are appropriate

Question 6

When making a fair value measurement,management of the entity should strive to maximize ________ while minimizing _________.

Accepted Answer

A)  Observable inputs; market value 
B)  Transaction costs; transport costs 
C)  Observable inputs; unobservable inputs 
D)  Sufficient data; transaction costs 
A)  Observable inputs; market value 
B)  Transaction costs; transport costs 
C)  Observable inputs; unobservable inputs 
D)  Sufficient data; transaction costs

Question 7

Which of the following is not a criticism of fair value measurement?

Accepted Answer

A)  Fair value measures can be unreliable 
B)  Fair value measurements caused the global financial crisis of 2007 
C)  The measurements are not always relevant 
D)  The measurements impact the statement of financial position 
A)  Fair value measures can be unreliable 
B)  Fair value measurements caused the global financial crisis of 2007 
C)  The measurements are not always relevant 
D)  The measurements impact the statement of financial position

Question 8

The fair value definition relates to which elements of financial statements?

Accepted Answer

A)  Revenues and expenses 
B)  Assets and Liabilities 
C)  Equity and Liabilities 
D)  Dividends and Taxes 
A)  Revenues and expenses 
B)  Assets and Liabilities 
C)  Equity and Liabilities 
D)  Dividends and Taxes

Question 9

Which of the following is an example of a Level 1 input,according to the fair value hierarchy?

Accepted Answer

A)  Quoted stock prices 
B)  Market-corroborated inputs 
C)  Future net cash flows 
D)  Quoted prices for similar assets 
A)  Quoted stock prices 
B)  Market-corroborated inputs 
C)  Future net cash flows 
D)  Quoted prices for similar assets

Question 10

Explain the valuation premise and discuss how it is used,depending on what is identified as the highest and best use.

Accepted Answer

The maximum value to market participants

Question 11

What caused the IASB to increase the required disclosures related to fair value measurements?

Accepted Answer

A)  AASB 13 
B)  The Global Financial Crisis (GF
C)  
C)  Non-recurring fair value measurements 
D)  IASB convergence 
A)  AASB 13 
B)  The Global Financial Crisis (GF
C)  
C)  Non-recurring fair value measurements 
D)  IASB convergence

Question 12

Discuss the three widely used valuation techniques utilised to determine the appropriate fair value measurement.

Accepted Answer

The market approach,which uses prices an

Question 13

Explain the differences between the concept of unit of account and valuation premise.

Accepted Answer

The unit of account is used to determine

Which of the following is an example of a Level 3 input,according to the fair value hierarchy?

Which of the following is not a characteristic of a market participant?

On which type of transaction is the measurement of fair value based?

Which measurement is utilised when non-financial assets are assessed for fair value purposes?

What is the purpose of AASB 13,'Fair Value Measurement'?

When making a fair value measurement,management of the entity should strive to maximize while minimizing _.

Which of the following is not a criticism of fair value measurement?

The fair value definition relates to which elements of financial statements?

Which of the following is an example of a Level 1 input,according to the fair value hierarchy?

Explain the valuation premise and discuss how it is used,depending on what is identified as the highest and best use.

What caused the IASB to increase the required disclosures related to fair value measurements?

Discuss the three widely used valuation techniques utilised to determine the appropriate fair value measurement.

Explain the differences between the concept of unit of account and valuation premise.

Institutional Arrangements for Setting Accounting Standards in Australia

The Conceptual Framework: Purpose, reporting Entity, the Objective of Financial Reporting, and Qualitative Characteristics

The Conceptual Framework: Definition, recognition and Measurement of the Elements in General Purpose Financial Statements

The Choice of Accounting Methods

The Statement of Financial Position

Accounting for Current Assets

Accounting for Property, plant and Equipment

Accounting for Company Income Tax

Accounting for Intangible Assets

Accounting for Leases

Accounting for Employee Benefits

Accounting for Financial Instruments

The Statement of Comprehensive Income

Revenue

The Statement of Cash Flows

Financial Reporting: Segment Reporting and Highlights Statements

Further Financial Reporting Issues

Accounting for Extractive Industry

Accounting for Agricultural Activity

Accounting for Superannuation Entities

Accounting for Insurance

International Accounting Standards, harmonisation and Convergence

Foreign Currency Translation

Accounting for Corporate

Ethics in Accounting

Filters

Exam 4: Fair Value Measurement

Which of the following is an example of a Level 3 input,according to the fair value hierarchy?

Which of the following is not a characteristic of a market participant?

On which type of transaction is the measurement of fair value based?

Which measurement is utilised when non-financial assets are assessed for fair value purposes?

What is the purpose of AASB 13,'Fair Value Measurement'?

When making a fair value measurement,management of the entity should strive to maximize ________ while minimizing _________.

Which of the following is not a criticism of fair value measurement?

The fair value definition relates to which elements of financial statements?

Which of the following is an example of a Level 1 input,according to the fair value hierarchy?

Explain the valuation premise and discuss how it is used,depending on what is identified as the highest and best use.

What caused the IASB to increase the required disclosures related to fair value measurements?

Discuss the three widely used valuation techniques utilised to determine the appropriate fair value measurement.

Explain the differences between the concept of unit of account and valuation premise.

Institutional Arrangements for Setting Accounting Standards in Australia

The Conceptual Framework: Purpose, reporting Entity, the Objective of Financial Reporting, and Qualitative Characteristics

The Conceptual Framework: Definition, recognition and Measurement of the Elements in General Purpose Financial Statements

The Choice of Accounting Methods

The Statement of Financial Position

Accounting for Current Assets

Accounting for Property, plant and Equipment

Accounting for Company Income Tax

Accounting for Intangible Assets

Accounting for Leases

Accounting for Employee Benefits

Accounting for Financial Instruments

The Statement of Comprehensive Income

Revenue

The Statement of Cash Flows

Financial Reporting: Segment Reporting and Highlights Statements

Further Financial Reporting Issues

Accounting for Extractive Industry

Accounting for Agricultural Activity

Accounting for Superannuation Entities

Accounting for Insurance

International Accounting Standards, harmonisation and Convergence

Foreign Currency Translation

Accounting for Corporate

Ethics in Accounting

Filters

When making a fair value measurement,management of the entity should strive to maximize while minimizing _.