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:

Risk of Loss

The exposure to potential financial harm or loss of property value, particularly in the case of goods during a transaction.

Insurance Policies

Contracts between an insurer and the insured that specify the terms for payment in the event of a loss.

State Laws

Regulations established by individual states within a country, which govern within their territory and may vary from state to state.

Federal Laws

Laws enacted by the national government of a country that apply to the entire nation, superseding state and local laws where there is conflict.