Fair Value Framework Flashcards
1
Q
ASC Topic 820, Fair value measurement assumption of nonfinancial assets:
A
The asset is in its highest and best use
2
Q
The accepted approaches in ASC topic 820 are:
A
cost approach
market approach
income approach
3
Q
FV option for valuing financial assets and liabilities must be applied to:
A
all interests in the same entity
4
Q
Principal market for establishing FV of Asset:
A
Market that has greatest volume and level of activity for asset
5
Q
Market participants in determining FV:
A
Buyers and sellers in principal market or most advantageous market for the asset or liability.
Should be independent, knowledgeable, able to transact for asset, and willing to transact
6
Q
Obligation for warranties valued at FV:
A
if warranties can be settled by contracting with a third party
