The Fair Value Principle

question 86

Multiple Choice

The fair value principle

• A) is one of the two costing principles followed by the IASB.
• B) is more useful than the historical cost principle for valuing some assets.
• C) dictates that an asset should be valued at the price at which it could be sold.
• D) All of these answer choices are correct.

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Definitions:

Bargaining Position

The stance taken or the arguments and resources held by a party in a negotiation, influencing their capacity to negotiate terms.

Resistance Point

The least favorable outcome a negotiator is willing to accept before walking away from a negotiation.

Information Overload Tactic

A negotiation or influence strategy involving overwhelming an opponent with excessive information to cloud their decision-making.

Costs of Delay

The negative consequences or losses associated with not resolving a problem or completing a task in a timely manner.