In relation to the IFRS 13 – Fair Value, please answer the questions below:

1. Which of the following valuation techniques are not a part of Income Approach

present value techniques

Black-Scholes-Merton formula

binomial model of option pricing

Matrix pricing

2. Level 1 inputs consists of the following

quoted prices for similar assets or liabilities in active markets

quoted prices for identical or similar assets or liabilities in markets that are not
active

quoted prices (unadjusted) in active market

inputs other than quoted prices that are observable for the asset or liability

3. ______________is the price that would be received to sell an asset or paid to

transfer a liability in an orderly transaction between market participants at the
measurement date

Fair value

Entity specific value

Historical Cost

Net Realisable value

4. If there is a principal market, the price in the principal market must be used
even if the prices in the other markets are more advantageous.

TRUE

FALSE

5. Under IFRS 13, fair value is based on the _________________.

Transaction price

exit price

entry price

market price

6. IFRS 13 prohibits adjusting the fair value for transaction costs, but it requires
such transaction costs to be considered in determining ___________

Principal Market

Most advantegeous market

Fair value

Historical cost

7. The highest and best use is determined based on its use and not classification &
considers assets use that is:

Physically possible

Legally permissible

Financially feasible

All of the above