Tutorial Week 6 Blackboard Questions and Solutions 1 Chapter 5 – Fair value measurement REVIEW QUESTIONS 1. Name three current accounting standards that permit or require the use of fair values. 3. What are the key elements of the definition of “fair value”? 8. What are the key steps in determining a fair value measure? 1. the particular asset or liability that is the subject of the measurement (consistent with its unit of account). 2. for a non-financial asset, the valuation premise that is appropriate for the measurement (consistently with its highest and best use). 3. the principal (or most advantageous market) for the asset or liability. 4. the valuation technique(s) appropriate for the measurement, considering the availability of data with which to develop inputs that represent the assumptions that market participants would use in pricing the asset or liability and the level of the fair value hierarchy within which the inputs are categorised.