Which of the Following Possible Measurement Bases Listed by the IASB

question 37

Multiple Choice

Which of the following possible measurement bases listed by the IASB in the most prevalent?

• A)Present value
• B)Exit value
• C)Replacement cost
• D)Historical cost

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Definitions:

Underlying Stock

The stock that is the basis or the security that options, futures, or other derivatives contracts are derived from or based upon.

Options

Financial derivatives that give the buyer the right, but not the obligation, to buy or sell an underlying asset at a specified price on or before a specified date.

Held

Describes investments or securities that are retained or possessed over a period without being sold or traded.

Exercise Price

The specified price at which an option contract can be executed, typically referring to the buy (call) or sell (put) price for stocks.