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

question 53

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

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Definitions:

Prefabricated Garages

Garages that are manufactured in sections off-site and then assembled on-site, providing a quick and often cost-effective building solution.

Sales Schedule

A detailed plan that outlines the expected timing and quantity of sales of a product or service.

Price Makers

Firms that possess the power to set the price of a good or service because of a lack of competition or the unique nature of the product.

Purely Competitive

A market structure characterized by a large number of small firms, free entry and exit, homogeneity of products, and perfect information that leads to the price being dictated by the market.