Fair Value Measurement and its Impact on Net Income

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38 Questions

Which statement best describes the relevance of measuring an asset or liability at historical cost?

When is measuring an asset or liability at historical cost considered relevant?

What does historical cost reflect in terms of asset measurement?

Which of the following is NOT a factor considered in the measurement basis of value in use?

Which of the following is NOT an income or expense arising on the initial recognition of an asset not acquired on market terms?

What is the income equal to when fulfilling a liability at historical cost?

What is the income equal to when transferring a liability at fulfilment value?

Which measurement basis provides information about the cost at which an equivalent asset could be acquired or created at the measurement date or the consideration that would be received for incurring or taking on an equivalent liability?

Which measurement basis provides information about the present value of the estimated cash flows from the use of an asset and from its ultimate disposal?

Which measurement basis may have predictive value, particularly if the liability will be fulfilled, rather than transferred or settled by negotiation?

Which measurement basis reflects the cost of an asset consumed or about income from the fulfilment of liabilities, and can be used to derive current margins and predict future margins when price changes are significant?

According to the text, when an asset other than a financial asset is measured at historical cost, what gives rise to an expense?

According to the text, when the sale of an asset occurs, when is the expense recognized?

According to the text, if a liability other than a financial liability is measured at historical cost, what gives rise to income?

According to the text, what information can be used to assess an entity's prospects for future net cash inflows?

Which one of the following reflects the current consideration for transferring a liability?

Which one of the following is reflected in income and expenses from changes in fair value?

Which one of the following is NOT recognized except to the extent that the liability is onerous?

Which one of the following may give rise to income or expenses on the initial recognition of a liability incurred or taken on not on market terms?

Which one of the following statements is true about measuring assets and liabilities at fair value?

When an asset is measured at historical cost, what gives rise to an expense?

Which one of the following is NOT a factor considered in the measurement basis of fair value?

What can information about interest earned on assets and interest incurred on liabilities measured at amortized cost provide?

Which measurement basis provides information about the present value of the estimated cash flows from the use of an asset and from its ultimate disposal?

Which one of the following reflects the current consideration for transferring a liability?

Which one of the following is NOT recognized except to the extent that the liability is onerous?

According to the text, what information can be used to assess an entity's prospects for future net cash inflows?

Which of the following statements is true about measuring an asset or liability at historical cost?

When is measuring an asset or liability at historical cost considered relevant?

What does historical cost reflect in terms of asset measurement?

Which measurement basis provides information about the cost at which an equivalent asset could be acquired or created at the measurement date or the consideration that would be received for incurring or taking on an equivalent liability?

Which measurement basis reflects the cost of an asset consumed or about income from the fulfilment of liabilities, and can be used to derive current margins and predict future margins when price changes are significant?

According to the text, what information can be used to assess an entity's prospects for future net cash inflows?

Which measurement basis may have predictive value, particularly if the liability will be fulfilled, rather than transferred or settled by negotiation?

Which of the following is reflected in income and expenses from changes in fulfilment value?

What is the income equal to when fulfilling a liability at historical cost?

When is measuring an asset or liability at historical cost considered relevant?

Which one of the following may give rise to income or expenses on the initial recognition of a liability incurred or taken on not on market terms?

Description

Test your knowledge on fair value measurement and its impact on net income or expenses. Explore the concepts of value in use and fulfilment value in assessing asset values. Discover the significance of transaction costs in determining net income or expenses arising from sales or transfers.

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