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CA Final Ind AS 113 Fair Value Measurement — practice questions — page 3

Explore 84 free Ind AS 113 Fair Value Measurement questions in CA Final Financialreporting. Open each question or exercise to read its content, reference answers and available explanation.

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Ind AS 113 Fair Value Measurement questions and exercises with answers

Showing questions 61–84 of 84.

Matrix pricing is a mathematical technique used mainly to valueRead the answer and worked solution →The cost approach reflects the amount needed currently toRead the answer and worked solution →The income approach converts future amounts intoRead the answer and worked solution →Which technique is an income approach valuation method?Read the answer and worked solution →The multi-period excess earnings method is used to measure fair value of someRead the answer and worked solution →The fair value hierarchy gives the highest priority toRead the answer and worked solution →The fair value hierarchy prioritisesRead the answer and worked solution →Inputs span several levels. The measurement takes the level ofRead the answer and worked solution →When deciding the hierarchy level of fair value less costs to sell, the costs to sell areRead the answer and worked solution →A Level 2 quote is adjusted by a significant unobservable input for a sale restriction. The result is categorised asRead the answer and worked solution →Level 1 inputs are quoted prices that areRead the answer and worked solution →A holding of 10,000 shares is quoted at Rs 250 in an active market. Level 1 fair value?Read the answer and worked solution →Using matrix pricing instead of quoted prices for a large bond portfolio leads toRead the answer and worked solution →Which input is a Level 2 input?Read the answer and worked solution →Level 3 inputs areRead the answer and worked solution →When building Level 3 inputs, an entity may begin with its own data but must adjust it ifRead the answer and worked solution →Unobservable inputs in Level 3 must reflect assumptions that market participants would use, includingRead the answer and worked solution →Fair value measurements that other Ind ASs require in the balance sheet each period are calledRead the answer and worked solution →An asset held for sale at fair value less costs to sell under Ind AS 105 is an example of aRead the answer and worked solution →For recurring Level 3 items, a narrative must coverRead the answer and worked solution →IFRS 13 Fair Value Measurement became effective for periods beginning onRead the answer and worked solution →Does IFRS 13 say when fair value should be used?Read the answer and worked solution →Under IAS 40, changes in fair value of investment property under the fair value model go toRead the answer and worked solution →An upward PPE revaluation under IAS 16 builds up in equity asRead the answer and worked solution →

Worked practice questions

Matrix pricing is a mathematical technique used mainly to value

  1. Land and buildings
  2. Debt securities
  3. Purchased goodwill
  4. Raw material stock
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Correct answer: B. Debt securities

Matrix pricing values debt securities by their relationship to benchmark quoted securities, so it falls under the market approach.

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The cost approach reflects the amount needed currently to

  1. Dispose of the asset
  2. Replace its service capacity
  3. Insure the asset fully
  4. Depreciate the asset
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Correct answer: B. Replace its service capacity

The cost approach is current replacement cost, the amount needed to replace an asset's service capacity.

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The income approach converts future amounts into

  1. A single discounted amount
  2. A run of old costs
  3. A replacement cost
  4. A comparable multiple
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Correct answer: A. A single discounted amount

The income approach discounts future cash flows or income and expenses to a single present amount.

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