With Regard to the Measurement of Hybrid/compound Instruments

question 33

Multiple Choice

With regard to the measurement of hybrid/compound instruments,

• A) IFRS requires the use of the relative fair value method.
• B) IFRS requires the use of the residual method.
• C) ASPE does not allow the equity component to be valued at zero.
• D) After the initial measurement, the debt portion is always measured at fair value.

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Definitions:

Average Replacement-level

The fertility rate at which a population exactly replaces itself from one generation to the next, without migration.

Actual Average

The true or exact mean calculated from a set of data, as opposed to an estimated or theoretical average.

Rhythm Method

A form of natural family planning based on tracking the menstrual cycle to predict fertile days to avoid or achieve pregnancy.

Birth Control

A method or device used to prevent pregnancy.