All of the Following Statements Are Key Reasons Given by the IASB

question 26

Multiple Choice

All of the following statements are key reasons given by the IASB for issuing a standard on fair value measurement except for:

• A) To require the use of fair value when accounting for all non-financial assets.
• B) To establish a single source of guidance for all fair value measurements required or permitted by IFRSs to reduce complexity and improve consistency in their application.
• C) To clarify the definition of fair value and related guidance in order to communicate the measurement objective more clearly.
• D) To enhance disclosures about fair value to enable users of financial statements to assess the extent to which fair value is used and to inform them about the inputs used to derive those fair values.

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Definitions:

Goodwill

An intangible asset representing the value of a company's brand, customer relationships, employee relations, and other non-physical assets.

Intangible Asset

An asset that lacks physical substance but is still valuable because of its potential economic benefits, such as patents or trademarks.

Amortized

The process of spreading out a loan or intangible asset cost over a fixed period in regular installments, covering interest and principal payments.

Salvage Value

The anticipated market value of an asset at the conclusion of its operational lifespan.