Which of the Following Steps in Not Relevant When Valuing

question 22

Multiple Choice

Which of the following steps in not relevant when valuing liabilities?

• A)the particular liability that is the subject of the measurement
• B)the valuation premise that is appropriate for the measurement
• C)the principal (or most advantageous)market for the liability
• D)the valuation technique(s)appropriate for the measurement,considering the availability of data with which to develop inputs that represent the assumptions that market participants would use when pricing the asset or liability and the level of the fair value hierarchy within which the inputs are categorised.

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Definitions:

Optimal Level

The most advantageous or effective state or degree of something for a specific purpose or outcome.

Fight-or-flight Response

A physiological reaction to perceived harm or threat, mobilizing the body for fighting or fleeing.

Social Evolution

The gradual development and progression of societies and cultures over time through mechanisms such as adaptation, selection, and innovation.

Biological Evolution

The process through which species of organisms undergo changes over time through genetic variation and natural selection.