Question 1

When measuring the fair value of a liability, which of the following is assumed?

Accepted Answer

A)  the liability is settled by the holder; 
B)  the liability will be settled by the market participant; 
C)  the liability will not be settled; 
D)  the liability is settled with the counterparty on measurement date. 
A)  the liability is settled by the holder; 
B)  the liability will be settled by the market participant; 
C)  the liability will not be settled; 
D)  the liability is settled with the counterparty on measurement date.

Question 2

Which of the following documents issued alongside IFRS 13 do not form an integral part of the standard? 
I Basis for Conclusions
II Illustrative Examples
III Appendix A: Defined terms
IV Appendix B: Application guidance

Accepted Answer

A)  I and II; 
B)  II and III; 
C)  III and IV; 
D)  I and IV. 
A)  I and II; 
B)  II and III; 
C)  III and IV; 
D)  I and IV.

Question 3

Which of the following disclosure are required under IFRS 13?

Accepted Answer

A)  the valuation techniques used to measure fair value 
B)  the level of the fair value hierarchy within which the fair value measurements are categorised 
C)  quantitative information about the significant unobservable inputs used in the fair value measurement 
D)  all of the options are correct. 
A)  the valuation techniques used to measure fair value 
B)  the level of the fair value hierarchy within which the fair value measurements are categorised 
C)  quantitative information about the significant unobservable inputs used in the fair value measurement 
D)  all of the options are correct.

Question 4

The fair value of an equity instrument is based on determining a/an _________ price which may relate to the price paid for an entity to repurchase its shares.

Accepted Answer

A)  transfer; 
B)  settlement; 
C)  entry; 
D)  exit. 
A)  transfer; 
B)  settlement; 
C)  entry; 
D)  exit.

Question 5

At which date is fair value determined?

Accepted Answer

A)  the measurement date; 
B)  the settlement date; 
C)  the transaction date; 
D)  the exchange date. 
A)  the measurement date; 
B)  the settlement date; 
C)  the transaction date; 
D)  the exchange date.

Question 6

Which of the following is not a valuation technique prescribed by IFRS 13?

Accepted Answer

A)  the fair value approach; 
B)  the income approach; 
C)  the cost approach; 
D)  the market approach. 
A)  the fair value approach; 
B)  the income approach; 
C)  the cost approach; 
D)  the market approach.

Question 7

Which of the following is not assumed when measuring the fair value of an equity instrument?

Accepted Answer

A)  The market participant transferee will take on the rights and responsibilities associated with the instrument; 
B)  An entity's own equity instruments are transferred to a market participant at transfer date; 
C)  An entity's own equity instrument would remain outstanding; 
D)  The instrument would not be cancelled or otherwise extinguished on the measurement date. 
A)  The market participant transferee will take on the rights and responsibilities associated with the instrument; 
B)  An entity's own equity instruments are transferred to a market participant at transfer date; 
C)  An entity's own equity instrument would remain outstanding; 
D)  The instrument would not be cancelled or otherwise extinguished on the measurement date.

Question 8

Which are the two most common measures used by IFRS?

Accepted Answer

A)  fair value less costs to sell and cost; 
B)  value in use and cost; 
C)  cost and fair value; 
D)  net realisable value and fair value. 
A)  fair value less costs to sell and cost; 
B)  value in use and cost; 
C)  cost and fair value; 
D)  net realisable value and fair value.

Question 9

Which of the following is not one of the key reasons given by the IASB for a standard on fair value measurement?

Accepted Answer

A)  to establish a single source of guidance for all fair value measurements required or permitted by IFRSs to reduce complexity and improve consistency in their application; 
B)  to clarify the definition of fair value and related guidance in order to communicate the measurement objective more clearly; 
C)  to require the use of fair value when accounting for all non-financial assets; 
D)  to enhance disclosures about fair value to enable users of financial statements to assess the extent to which fair value is used and to inform them about the inputs used to derive those fair values. 
A)  to establish a single source of guidance for all fair value measurements required or permitted by IFRSs to reduce complexity and improve consistency in their application; 
B)  to clarify the definition of fair value and related guidance in order to communicate the measurement objective more clearly; 
C)  to require the use of fair value when accounting for all non-financial assets; 
D)  to enhance disclosures about fair value to enable users of financial statements to assess the extent to which fair value is used and to inform them about the inputs used to derive those fair values.

Question 10

Which of the following is an indication of an active market?

Accepted Answer

A)  there are few recent transactions; 
B)  price quotations vary substantially over time; 
C)  price quotations vary substantially among market-makers; 
D)  price quotations are based on current market information. 
A)  there are few recent transactions; 
B)  price quotations vary substantially over time; 
C)  price quotations vary substantially among market-makers; 
D)  price quotations are based on current market information.

When measuring the fair value of a liability, which of the following is assumed?

Which of the following documents issued alongside IFRS 13 do not form an integral part of the standard? I Basis for Conclusions II Illustrative Examples III Appendix A: Defined terms IV Appendix B: Application guidance

Which of the following disclosure are required under IFRS 13?

The fair value of an equity instrument is based on determining a/an _________ price which may relate to the price paid for an entity to repurchase its shares.

At which date is fair value determined?

Which of the following is not a valuation technique prescribed by IFRS 13?

Which of the following is not assumed when measuring the fair value of an equity instrument?

Which are the two most common measures used by IFRS?

Which of the following is not one of the key reasons given by the IASB for a standard on fair value measurement?

Which of the following is an indication of an active market?

The Iasb and Its Conceptual Framework

Owners Equity: Share Capital and Reserves

Revenue From Contracts With Customers

Provisions, Contingent Liabilities and Contingent Assets

Financial Instruments

Share-Based Payment

Inventories

Employee Benefits

Leases

Impairment of Assets

Financial Statement Presentation

Statement of Cash Flows

Operating Segments

Other Key Notes Disclosures

Consolidation: Controlled Entities

Consolidation: Wholly Owned Subsidiaries

Consolidation: Intragroup Transactions

Translation of the Financial Statements of Foreign Entities

Agriculture

Associates and Joint Ventures

Joint Arrangements

Revenue From Contracts With Customers

Financial Instruments

Financial Instruments

Share-Based Payment

Exploration for and Evaluation of Mineral Resources

Filters

Exam 3: Fair Value Measurement

When measuring the fair value of a liability, which of the following is assumed?

Which of the following documents issued alongside IFRS 13 do not form an integral part of the standard? I Basis for Conclusions II Illustrative Examples III Appendix A: Defined terms IV Appendix B: Application guidance

Which of the following disclosure are required under IFRS 13?

The fair value of an equity instrument is based on determining a/an _________ price which may relate to the price paid for an entity to repurchase its shares.

At which date is fair value determined?

Which of the following is not a valuation technique prescribed by IFRS 13?

Which of the following is not assumed when measuring the fair value of an equity instrument?

Which are the two most common measures used by IFRS?

Which of the following is not one of the key reasons given by the IASB for a standard on fair value measurement?

Which of the following is an indication of an active market?

The Iasb and Its Conceptual Framework

Owners Equity: Share Capital and Reserves

Revenue From Contracts With Customers

Provisions, Contingent Liabilities and Contingent Assets

Financial Instruments

Share-Based Payment

Inventories

Employee Benefits

Leases

Impairment of Assets

Financial Statement Presentation

Statement of Cash Flows

Operating Segments

Other Key Notes Disclosures

Consolidation: Controlled Entities

Consolidation: Wholly Owned Subsidiaries

Consolidation: Intragroup Transactions

Translation of the Financial Statements of Foreign Entities

Agriculture

Associates and Joint Ventures

Joint Arrangements

Revenue From Contracts With Customers

Financial Instruments

Financial Instruments

Share-Based Payment

Exploration for and Evaluation of Mineral Resources

Filters