Podcast
Questions and Answers
Which one of the following is a measurement basis identified in financial statements?
Which one of the following is a measurement basis identified in financial statements?
- Current value
- Opportunity cost
- Book value (correct)
- Intrinsic value
What does historical cost measure in financial statements?
What does historical cost measure in financial statements?
- Changes in values
- Price of the transaction (correct)
- Impairment of assets
- Current market value
Why might different measurement bases be selected for different assets, liabilities, income, and expenses?
Why might different measurement bases be selected for different assets, liabilities, income, and expenses?
- To ensure consistency in financial reporting
- To consider qualitative characteristics (correct)
- To increase the cost constraint
- To reflect changes in values
Which measurement basis reflects estimates of future cash flows, discounted at a rate determined at initial recognition?
Which measurement basis reflects estimates of future cash flows, discounted at a rate determined at initial recognition?
What is 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?
What is 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 measurement basis provides monetary information about assets, liabilities and related income and expenses, using information updated to reflect conditions at the measurement date?
Which measurement basis provides monetary information about assets, liabilities and related income and expenses, using information updated to reflect conditions at the measurement date?
What is the value of the costs incurred in acquiring or creating an asset, comprising the consideration paid to acquire or create the asset plus transaction costs?
What is the value of the costs incurred in acquiring or creating an asset, comprising the consideration paid to acquire or create the asset plus transaction costs?
Which one of the following factors is NOT considered when determining fair value?
Which one of the following factors is NOT considered when determining fair value?
Which one of the following is NOT a characteristic of value in use and fulfilment value?
Which one of the following is NOT a characteristic of value in use and fulfilment value?
Which one of the following measurement bases reflects prices in the market in which the entity would acquire the asset or incur the liability?
Which one of the following measurement bases reflects prices in the market in which the entity would acquire the asset or incur the liability?
Which one of the following is NOT a characteristic of current cost?
Which one of the following is NOT a characteristic of current cost?
Which of the following factors can affect the estimated amount or timing of future cash flows for an asset or liability?
Which of the following factors can affect the estimated amount or timing of future cash flows for an asset or liability?
What is the difference between current cost and historical cost?
What is the difference between current cost and historical cost?
Which value reflects the present value of the cash flows an entity expects to derive from the use of an asset and its ultimate disposal?
Which value reflects the present value of the cash flows an entity expects to derive from the use of an asset and its ultimate disposal?
What is the main difference between fair value and value in use?
What is the main difference between fair value and value in use?
