Which of the Following Is/are Not True Regarding the Fair

question 83

Multiple Choice

Which of the following is/are not true regarding the fair value of long-lived assets?

• A)U.S.GAAP does not permit firms to increase the balance sheet carrying values of tangible and intangible long-lived assets when the fair values of their assets increase.
• B)IFRS permits upward asset revaluations, the recognition of unrealized increases in the fair value of tangible and intangible long-lived assets under certain conditions.
• C)IFRS requires that firms credit the increase in the tangible and intangible revalued asset's balance sheet carrying value to net income.
• D)U.S.GAAP firms recognize the increase in the fair value of the tangible and intangible asset only as the firm realizes the value increase through either sale or continuing use.
• E)all of the above

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Definitions:

Dividend Yield

A ratio demonstrating the yearly dividends a company distributes in relation to its share price.

Exercise Price

The price at which an option holder can buy or sell the underlying security.

Protective Put

An options strategy wherein an investor holds a long position in a stock and buys put options on that same stock to protect against the stock's decline in price.

T-bill Rate

The yield or interest rate paid to investors of U.S. Treasury bills, a short-term government security.