Question 11 pts

Which of the following defines the term ‘fair value’?

Group of answer choices

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

The weighted average price at which orderly transactions to sell assets or to transfer
liabilities are taking place between market participants at the reporting date in the
relevant market

The entry price at the measurement date from the perspective of a market participant
that holds the asset or owes the liability

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

Flag question: Question 2

Question 21 pts
The definition of fair value focuses on __________ because they are a primary subject
of accounting measurement.
Group of answer choices

Observable and unobservable inputs

Rights and obligations

Assets and liabilities

Entry price and exit price

Flag question: Question 3

Question 31 pts
Which of the following is not the exceptions for application of IFRS 13?

Group of answer choices

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 Leasing transactions within the scope of IFRS 16 Leases

Net realisable value of inventories within the scope of IAS 2 Inventories

Hedge instruments within the scope of IFRS 9 Financial Instruments

All of the given choices

Flag question: Question 4

Question 41 pts
In order to perform a fair value measurement, 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.
Group of answer choices

True

False

Flag question: Question 5

Question 51 pts
Which statement is true regarding IFRS 13?
Group of answer choices

The Standard defines fair value on the basis of an 'exit price' notion and uses a 'fair
value hierarchy'

None in the given choices

Entity’s intention to hold an asset or to settle a liability is relevant when measuring fair
value

Estimation of a price of the asset of a liability is a main objective of a fair value

measurement

Flag question: Question 6

Question 61 pts
The disclosures imposed by IFRS 13 are not required for which of the following?
Group of answer choices

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 Assets for which recoverable amount is fair value less costs of disposal in accordance
with IAS 36 Impairment of Assets

All of the given chouces

Retirement benefit plan investments measured at fair value in accordance with IAS 26
Accounting and Reporting by Retirement Benefit Plans

Plan assets measured at fair value in accordance with IAS 19 Employee Benefits

Flag question: Question 7

Question 71 pts
When performing fair value measurement, an entity needs to identify specific market
participants.
Group of answer choices

True

False

Flag question: Question 8

Question 81 pts
Which is true about fair value measurement of a non-financial asset?
Group of answer choices

It takes into account a market participant's ability to generate economic benefits by

using the asset in its highest and best use.

It takes into account weighted average cost of the asset or similar assets

It is impossible to estimate fair value of a non-financial asset; historical cost should be

used instead

It takes into account a market participant’s ability to generate economic benefits by

selling it to another market participant that would use the asset in its highest and best
use

Flag question: Question 9

Question 91 pts

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 Which of the following is not a valuation technique?
Group of answer choices

Cost approach

Income approach

Residual approach

Market approach

Flag question: Question 10

Question 101 pts
Which of the following is not relevant when measuring the fair value of an asset?
Group of answer choices

Whether the asset is sold in an orderly transaction

Whether the sale occurred between market participants

The measurement date, current price of the asset

The intention of an entity for holding an asset

Flag question: Question 11

Question 111 pts
Which of the following are examples of transaction costs in accordance with IFRS 13?
Group of answer choices

Transport costs

Transfer duty

Finance Cost

None in the given choices

Flag question: Question 12

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 Question 121 pts
In measuring the price (or fair value) in an orderly transaction, how should an entity
account for transaction costs?
Group of answer choices

The decision is asset-specific

Ignore transaction costs when measuring fair value

Include it in measuring the price

Adjust fair value for transaction costs

Flag question: Question 13

Question 131 pts
When measuring the fair value of a non-financial asset, reference must be made to
the highest and best use of the asset. Which of the following statements are true about
the highest and best use of the asset?
A. the use must be physically possible, legally permissible and financially
feasible
B. the highest and best use is determined from the perspective of market participants,
only if the entity intends to use the asset in its operations
C. the highest and best use is determined from the perspective of market participants,
regardless of whether the entity intends to use the asset
D. A. and C.
Group of answer choices

Flag question: Question 14

Question 141 pts
The assessment of the fair value of an entity’s financial instruments includes observable
market information for a similar instrument and our own assumptions. In what level
would this be categorised?

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 Group of answer choices

Level 3

Level 2

Level 2 or Level 3

Level 1

Flag question: Question 15

Question 151 pts
The fair value of a liability reflects non-performance risk (the risk the entity will not fulfil
an obligation), including an entity's own credit risk and assuming the same non-
performance risk before and after the transfer of the liability.
Group of answer choices

True

False

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