CIMA BA3 · Chapter 1 · Question 9 of 10
Which of the following is a current value measurement basis described in the IASB Conceptual Framework?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: A) Fair value
Explanation
The Conceptual Framework describes two categories of measurement basis: historical cost and current value. Current value bases are fair value, value in use (for assets) or fulfilment value (for liabilities), and current cost. The Framework states that applying the historical cost basis to financial assets and financial liabilities can be done by measuring them at amortised cost, so amortised cost is a historical cost measure, as is the original transaction price; neither is updated to reflect conditions at the measurement date.
More The accounting framework and the Conceptual Framework MCQs
- Q1Which of the following best describes the main purpose of financial accounting, as distinct from management accounting?
- Q2According to the IASB Conceptual Framework for Financial Reporting, what is the objective of general purpose financial reporting?
- Q3Which group does the Conceptual Framework identify as the primary users of general purpose financial reports?
- Q4Under the IASB Conceptual Framework, an asset is defined as:
- Q5Under the IASB Conceptual Framework, which of the following is the definition of a liability?