In Which Circumstance Will It Be Necessary to Determine the Fair

question 6

Multiple Choice

In which circumstance will it be necessary to determine the fair value of an entity's own equity instruments?

• A)where the entity is preparing for listing
• B)where the entity undertakes a business combination and issues its own equity instruments in exchange for a business
• C)where the entity undertakes a share buy-back
• D)where there is a change in the shareholding of the entity.

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Definitions:

Hypotenuse

The largest side of a right-angled triangle, positioned opposite to the right angle.

Sine

The angular relationship of the opposite side of a right triangle and the hypotenuse.

Opposite

Across from.

Hypotenuse

The longest side of a right-angled triangle, opposite the right angle, and determined by the square root of the sum of the squares of the other two sides.