oblig4

1.

1 point

Valuation approaches used by current IASB standards is:
i. Historical cost
ii. Fair values based on exit values
iii. Value in use

i, ii

i, iii

ii, iii

i, ii, iii

2.

1 point

Using fair values for assets could appear less attractive to management (and more risky for auditors) during periods of rising asset values.

True

False

3.

1 point

Which represent three essential characteristics of an asset?

future cash, control by an entity, result of current events

future economic benefit, control by an entity, result of past events

present economic benefit, control by an investor, result of past events

none of the listed

4.

1 point

The use of a current value model for intangible assets is:

Common

Mandatory

Rare

Prohibited

5.

1 point

Subsequent measurements based on historical cost means that asset are measured at:
acquisition costs less any accumulated depreciation and impairment charges

True

False

6.

1 point

IAS 16 and IAS 40 permit, but do not require, the use of a current value measurement model.

True

False

7.

1 point

An asset must have future cash generating abilities according to the definition in the Exposure draft of the IASB Conceptual Framework.

True

False

8.

1 point

Which of the inputs that are used to measure fair value are most difficult to audit?

Level 1

Level 2

Level 3

All are easy

9.

1 point

The statement concerning the measurement of tangible assets that is not true is:

The traditional approach has been to measure tangible assets at historical cost

IAS 16 requires the use of the revaluation model for subsequent measurement of tangible assets

IAS 16 permits the use of a current value measurement model for tangible assets

None of the above

10.

1 point

Under the IASB standards, fair value is used to measure financial assets on initial recognition.

True

False

11.

1 point

Which of these is not an argument in favor of restricting the recognition of internally generated goodwill?

Goodwill is not separable from other assets

There are difficulties in identifying whether and when goodwill will generate future economic benefits

Goodwill cannot be sold

All of the above

12.

1 point

The statement in relation to conservatism that is true is:

Conservatism is inconsistent with the principle of neutrality

Conservatism means recording assets early

Conservatism means not depleting future resources

All of the statements are true

13.

1 point

The valuation of financial instruments must emphasize market inputs.
Which of these inputs is considered to provide the most reliable evidence of fair value?

Level 1

Level 2

Level 3

14.

1 point

The extent and timing of recognition of assets are important because:

They can affect the decision making for users of financial statements

They can affect the calculation of ratios which are important inputs for debt covenants

They can affect management compensation

All of the above