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Worldatwork Exam T7 Topic 3 Question 103 Discussion

Actual exam question for Worldatwork's T7 exam
Question #: 103
Topic #: 3
[All T7 Questions]

The International Accounting Standards Board (IASB) has given companies the option to use fair value as the basis for measurement of financial assets and liabilities. Which of the following best defines fair value?

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Suggested Answer: A

by Tony at Nov 12, 2024, 11:54 PM

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Wilda
1 months ago
Well, if it's not C, I'm going to have a fair bit of trouble with this exam. Glad I didn't choose the 'residual interest' option - that would have been a real liability!
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Vivan
1 months ago
C is the way to go. I mean, who wouldn't want their financial assets and liabilities measured by the amount for which they could be exchanged between knowledgeable, willing parties? It's the fair-est of them all!
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Izetta
1 months ago
Hmm, I was between B and C, but I'm going with C. It just seems to capture the essence of fair value better than the other options.
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Lonna
6 days ago
User 1: I think fair value is the amount for which an asset could be exchanged or a liability settled between knowledgeable, willing parties in an arm's length transaction.
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Alline
2 months ago
Option C definitely sounds like the right choice to me. It's the only one that mentions willing parties and arm's length transactions.
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Carla
17 days ago
User 4: Definitely, fair value should reflect what knowledgeable and willing parties would agree upon in a transaction.
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Antonio
1 months ago
User 3: I think option C is the best choice because it includes the concept of arm's length transactions.
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Bulah
1 months ago
User 2: Yeah, it makes sense that fair value is the amount for which an asset could be exchanged between willing parties.
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Charlene
1 months ago
Yes, option C makes sense because it considers the exchange value between knowledgeable and willing parties.
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Deandrea
1 months ago
User 1: I agree, option C seems to be the most accurate definition of fair value.
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Justine
1 months ago
I agree, option C seems to be the most accurate definition of fair value.
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Crista
2 months ago
I think option C is the correct answer. It's the most comprehensive definition of fair value that I've come across.
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Lashaunda
1 months ago
I'm not sure, but option C seems to make the most sense in this context.
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Jennie
1 months ago
I believe option C is the most widely accepted definition of fair value.
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Leigha
2 months ago
I think option A could also be a possible definition of fair value.
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Francine
2 months ago
I agree, option C is the most accurate definition of fair value.
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Dan
3 months ago
I'm not sure about that. I think fair value is more about confirming users' expectations.
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Jaclyn
3 months ago
I agree with Evangelina. It's important for financial reporting to reflect the true value of assets and liabilities.
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Evangelina
3 months ago
I think fair value is the amount for which an asset could be exchanged between knowledgeable parties.
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