FAC3764
ASSESSMENT 2 – QUIZ QUESTIONS ONLY
THE FOLLOWING DOCUMENTS CONTAINS ALL 15
QUESTIONS ONLY FOR ASSESSMENT 2 OF FAC3764
MODULE. PLEASE NOTE THAT THIS DOCUMENT
DOES NOT CONTAIN ANY SOLUTIONS. IT IS MEANT
TO GUIDE YOU TO WORK THROUGH THESE
QUESTIONS BEFORE ATTEMPTING IT ON
MYUNISA.
, 1. Indicate whether the following statement is true or false.
When a revaluation to fair value requires an asset’s carrying amount to be increased, the
asset is debited and the credit entry is either processed in profit or loss or in other
comprehensive income.
Option 1 – True
Option 2 - False
2. Select the most correct answer:
If an IFRS allows the acquisition of an asset to be initially recognised at fair value, IFRS 13
states that:
Option 1 – one may assume that the transaction price equals the fair value.
Option 2 - the transaction price will always equal the fair value.
Option 3 – the transaction price will not equal the fair value.
Option 4 - care must be taken since the transaction price is an entry price whereas the fair
value is an exit price.
Option 5 – care must be taken since the transaction price is an exit price whereas the fair
value is an entry price.
3. Select the most correct answer:
If the entity applies the fair value model to measure investment properties, but the fair
value for one of its properties is no longer reliably measurable:
Option 1 - all investment properties must be remeasured under the cost model (i.e. the
entity must account for a change in accounting policy from the fair value model to the cost
model).
Option 2 - that one specific property must be remeasured under the cost model (cost less
accumulated depreciation and impairment losses).
Option 3 – that one specific property must be measured under the fair value model, and will
simply remain measured at its last known fair value.
Option 4 – that one specific property must be remeasured to cost.
Option 5 – none of the above
ASSESSMENT 2 – QUIZ QUESTIONS ONLY
THE FOLLOWING DOCUMENTS CONTAINS ALL 15
QUESTIONS ONLY FOR ASSESSMENT 2 OF FAC3764
MODULE. PLEASE NOTE THAT THIS DOCUMENT
DOES NOT CONTAIN ANY SOLUTIONS. IT IS MEANT
TO GUIDE YOU TO WORK THROUGH THESE
QUESTIONS BEFORE ATTEMPTING IT ON
MYUNISA.
, 1. Indicate whether the following statement is true or false.
When a revaluation to fair value requires an asset’s carrying amount to be increased, the
asset is debited and the credit entry is either processed in profit or loss or in other
comprehensive income.
Option 1 – True
Option 2 - False
2. Select the most correct answer:
If an IFRS allows the acquisition of an asset to be initially recognised at fair value, IFRS 13
states that:
Option 1 – one may assume that the transaction price equals the fair value.
Option 2 - the transaction price will always equal the fair value.
Option 3 – the transaction price will not equal the fair value.
Option 4 - care must be taken since the transaction price is an entry price whereas the fair
value is an exit price.
Option 5 – care must be taken since the transaction price is an exit price whereas the fair
value is an entry price.
3. Select the most correct answer:
If the entity applies the fair value model to measure investment properties, but the fair
value for one of its properties is no longer reliably measurable:
Option 1 - all investment properties must be remeasured under the cost model (i.e. the
entity must account for a change in accounting policy from the fair value model to the cost
model).
Option 2 - that one specific property must be remeasured under the cost model (cost less
accumulated depreciation and impairment losses).
Option 3 – that one specific property must be measured under the fair value model, and will
simply remain measured at its last known fair value.
Option 4 – that one specific property must be remeasured to cost.
Option 5 – none of the above
