F2

Question 1

Level 1 Inputs in the fair value hierarchy.

Answer 1

quoted prices in active markets for identical assets or liabilities

Question 2

Level 2 Inputs in the fair value hierarchy.

Answer 2

Inputs other than quoted market prices that are directly or indirectly observable.

Question 3

Level 3 Inputs in the fair value hierarchy.

Answer 3

Unobservable inputs for the asset or liabilty.

Question 4

Answer 4

$103.
The steps here are to take the highest net price (quoted price, less transaction costs). The actual fair value measurement is the quoted stock price, not the NRV

Question 5

What are the 3 components of the 10% “Size” test?

Answer 5

Revenue, Reported Profit or Loss, ASsets

Question 6

When using Revenue for the size test, what is the rule?

Answer 6

A segment is considered significant and therefore required to disclose if revenues (internal and external) are 10% or more of combined operating segments (internal and external)

Question 7

When using Reported Profit or Loss for the size test, what is the rule?

Answer 7

If combined profit or loss is 10% or more of the combined profit or loss, report it

Question 8

When using the Assets for size test, what is the rule?

Answer 8

segments identifiable net assets are 10% or more of the combined assets of all operating segments.

Question 9

What is the 75% sufficiency test?

Answer 9

the financials must have 75% of the external revenue covered. When using the size test, you must check to make sure that the segments that you have qualified with the size test, cover 75% of all the external revenue created. If it is less than 75%, additional segments must be added.