When Valuing Financial Instruments at Fair Value (The Fair Value

question 35

Multiple Choice

When valuing financial instruments at fair value (the fair value option) ,

• A)ASPE allows this option only for certain financial instruments.
• B)IFRS allows this for all financial instruments.
• C)IFRS requires that this option be used only where fair value does not result in more
• Relevant information.
• D)IFRS requires that non-performance risk be included in the fair value measurement.

---

Definitions:

Placebo

An inert or innocuous substance typically used as a control in clinical trials to test the efficacy of treatments.

Experimental Drug

A pharmaceutical compound that is in the process of being tested in preclinical or clinical trials to assess its safety and efficacy.

Full Dose

The complete amount of a medication or vaccine that is prescribed to achieve its intended effect.

Placebo

An inert or non-effective substance given to a control group in experiments to compare its effect with that of an actual drug.