Accounting Standard IAS 16/AASB 116 Requires What Basis of Valuation

question 5

Multiple Choice

Accounting standard IAS 16/AASB 116 requires what basis of valuation to be used if assets are valued at other than cost?

• A)Market value
• B)No basis of valuation is specified
• C)Fair value
• D)The lower of cost and net realisable value

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Definitions:

Disclosure Statement

A document that outlines important information, terms, or conditions about a financial transaction or investment that must be known by all parties involved.

Risks

Potential events or actions that could cause harm or loss to an individual, organization, or project.

Fees

Payments made for professional services or the right to engage in certain activities or access specific services.

Franchise Agreement

A legal, binding contract between a franchisor and franchisee, outlining mutual rights and responsibilities in the franchise arrangement.