The Use of Fair Value to Report Assets

question 128

Multiple Choice

The use of fair value to report assets

• A)is not allowed under GAAP or IFRS.
• B)is required by GAAP and IFRS.
• C)is increasing under GAAP and IFRS, but GAAP has adopted it more broadly.
• D)is increasing under GAAP and IFRS, but IFRS has adopted it more broadly.

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Definitions:

Requirement

A requirement refers to a condition or specification that must be met or complied with.

Effective

Having the intended or expected result or coming into force.

Writing

Writing refers to the recording of characters on a medium, enabling communication or documentation across time and space.

State Supreme Court

The highest judicial court in a U.S. state, responsible for interpreting state laws and constitutions.