Font size
WorksheetsFair Value
Total questions: 11
Worksheet time: 2mins
Fair Value 'exit price' refers to
price that would be received to buy the asset
price that would be received to sell the asset
price that would be received to hold the asset
Which of the following defines the term 'fair value'
the price at which an orderly transaction to sell an asset or to transfer a liability would take place between market participants at the reporting date under current market conditions.
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.
Which of the following are not the exceptions for the application of MFRS 13?
MFRS2 Share-based payment
MFRS 9 Financial Instruments
An entity needs to undertake an in-depth search of all possible markets to identify the principal market or, in the absence of a principal market, the most advantageous market.
True
False
Which of the following is a true statement about Fair Value?
A way to determine how much an item is currently worth
A value of a liquidated item
A maximum price for an item
What are two common ways to measure fair value?
COGS and Cost
Liquidation and Cost
Market Value and Cost
At which date is fair value determined?
The exchange date
The measurement date
The transaction date
The settlement date
Which of the following is not the valuation technique prescribed by MFRS13?
The income approach
The cost approach
The market approach
The fair value approach
Unobservable input for the asset or liability are an example of:
level 1 input
level 2 input
level 3 input
level 4 input
What is the definition of the principal market used in MFRS 13?
The one with the highest and best price for the asset or liability that can be accessed by the entity
The one with the highest value activity for the asset or liability that can be accessed by the entity
The one with the greatest volume and level of activity for the asset or liability that can be accessed by the entity.
What is the definition of the most advantageous market in accordance with MFRS 13?
The one with the highest and best price for the asset or liability that can be accessed by the entity
The one that maximizes the amount that would be received for the asset or paid to extinguish the liability after transport and transaction costs.
