Which of the Followings Is Not the Reason of Why

question 33

Multiple Choice

Which of the followings is not the reason of why entities do not use the full goodwill method?

• A) Users of financial statements do not see any value in the reported NCI.
• B) It is more costly to measure NCI at fair value.
• C) It results in less reliable NCI information due to difficulties in measuring NCI at fair value.
• D) There is not sufficient evidence to assess the marginal benefits of reporting the acquisition-date fair value of the NCI.

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Definitions:

Instantaneous Risk-free Rate

The theoretical rate of return of an investment with no risk of financial loss, typically considered as a very short-term government bond yield.

Hedge Ratio

The ratio of the size of a position in a hedging instrument to the size of the position being hedged.

Strike Price

The price at which the holder of an option contract has the right to buy or sell the underlying asset.

Underlying Stock

The stock on which a derivative instrument, such as an option or future, is based.