Which of the Following Is/are True Regarding the Fair Value

question 3

Multiple Choice

Which of the following is/are 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 other comprehensive 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:

Reward System

A mechanism in an organization to recognize and reward employee performance, potentially including monetary, benefits, and non-monetary rewards.

Performance Measures

Metrics or indicators used to gauge an individual's, organization's, or system's performance across various dimensions.

Transfer Prices

Prices charged for goods, services, or intangible property transferred between units of the same organization.

External Market Price

The price at which a product or service is sold in the open market to external customers, outside of the company or organization.