Question 1

Unobservable inputs for the asset or liability are an example of:

Accepted Answer

A)  a Level 1 input. 
B)  a Level 2 input. 
C)  a Level 3 input. 
D)  a Level 4 input. 
A)  a Level 1 input. 
B)  a Level 2 input. 
C)  a Level 3 input. 
D)  a Level 4 input.

Question 2

Which of the following is an example of a liability where there is no corresponding asset:

Accepted Answer

A)  A provision for decommissioning. 
B)  A debenture issued by a listed company. 
C)  A loan owing to a financial institution. 
D)  A provision for warranties. 
A)  A provision for decommissioning. 
B)  A debenture issued by a listed company. 
C)  A loan owing to a financial institution. 
D)  A provision for warranties.

Question 3

Which of the following documents issued alongside AASB 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 4

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 5

In measuring an equity instrument at fair value the objective is to estimate an exit price at measurement date from the perspective of:

Accepted Answer

A)  the issuer of the equity instrument. 
B)  the party to whom the instrument will be transferred. 
C)  the party who intends to repurchase the instrument. 
D)  a market participant who holds the instrument as an asset. 
A)  the issuer of the equity instrument. 
B)  the party to whom the instrument will be transferred. 
C)  the party who intends to repurchase the instrument. 
D)  a market participant who holds the instrument as an asset.

Question 6

Which of the following is not a valuation technique prescribed by AASB 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

When determining the fair value of an asset its fair value is based on its:

Accepted Answer

A)  current use. 
B)  proposed use. 
C)  highest and best use. 
D)  value in use. 
A)  current use. 
B)  proposed use. 
C)  highest and best use. 
D)  value in use.

Question 8

Which of the following is the definition of exit price per AASB 13:

Accepted Answer

A)  A transaction that assumes exposure to the market for a period before the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets or liabilities; it is not a forced transaction (e.g. a forced liquidation or distress sale). 
B)  The amount for which an asset could be exchanged or a liability settled, between knowledgeable, willing parties in an arm's length transaction. 
C)  The 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. 
D)  The price that would be received to sell an asset or paid to transfer a liability. 
A)  A transaction that assumes exposure to the market for a period before the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets or liabilities; it is not a forced transaction (e.g. a forced liquidation or distress sale). 
B)  The amount for which an asset could be exchanged or a liability settled, between knowledgeable, willing parties in an arm's length transaction. 
C)  The 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. 
D)  The price that would be received to sell an asset or paid to transfer a liability.

Question 9

Which of the following is the definition of fair value per AASB 13:

Accepted Answer

A)  The amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm's length transaction. 
B)  The 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. 
C)  The price that would be received to sell an asset or paid to transfer a liability. 
D)  A transaction that assumes exposure to the market for a period before the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets or liabilities; it is not a forced transaction (e.g. a forced liquidation or distress sale). 
A)  The amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm's length transaction. 
B)  The 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. 
C)  The price that would be received to sell an asset or paid to transfer a liability. 
D)  A transaction that assumes exposure to the market for a period before the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets or liabilities; it is not a forced transaction (e.g. a forced liquidation or distress sale).

Exam 3: Fair Value Measurement

Unobservable inputs for the asset or liability are an example of:

Which of the following is an example of a liability where there is no corresponding asset:

Which of the following documents issued alongside AASB 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

At which date is fair value determined?

In measuring an equity instrument at fair value the objective is to estimate an exit price at measurement date from the perspective of:

Which of the following is not a valuation technique prescribed by AASB 13:

When determining the fair value of an asset its fair value is based on its:

Which of the following is the definition of exit price per AASB 13:

Which of the following is the definition of fair value per AASB 13:

Accounting Regulation and the Conceptual Framework

Application of Accounting Theory

Inventories

Property, Plant and Equipment

Intangible Assets

Impairment of Assets

Provisions, Contingent Liabilities and Contingent Assets

Employee Benefits

Leases

Financial Instruments

Income Taxes

Share Capital and Reserves

Share-Based Payment

Revenue

Presentation of Financial Statements

Statement of Cash Flows

Accounting Policies and Other Disclosures

Earnings Per Share

Operating Segments

Related Party Disclosures

Sustainability and Corporate Social Responsibility Reporting

Foreign Currency Transactions and Forward Exchange Contracts

Translation of Foreign Currency Financial Statements

Business Combinations

Consolidation: Controlled Entities

Consolidation: Wholly Owned Entities

Consolidation: Intragroup Transactions

Consolidation: Non-Controlling Interest

Consolidation: Other Issues

Associates and Joint Ventures

Joint Arrangements

Insolvency and Liquidation

Accounting for Mineral Resources

Agriculture

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