[amp_mcq option1=”Historical cost” option2=”Fair value” option3=”Both A and B” option4=”None of these” correct=”option3″]<\/p>\n
The correct answer is: C. Both A and B<\/strong><\/p>\n IFRS is based on both historical cost and fair value. Historical cost is the price paid for an asset or liability at the time of its acquisition. Fair value 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.<\/p>\n Historical cost is the most common basis of measurement in IFRS. However, fair value is used for certain assets and liabilities, such as financial instruments and investment properties.<\/p>\n The use of both historical cost and fair value in IFRS provides a more comprehensive picture of an entity’s financial position and performance. Historical cost information is useful for assessing an entity’s past performance, while fair value information is useful for assessing an entity’s current and future prospects.<\/p>\n Here is a brief explanation of each option:<\/p>\n [amp_mcq option1=”Historical cost” option2=”Fair value” option3=”Both A and B” option4=”None of these” correct=”option3″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[85],"tags":[],"class_list":["post-45729","post","type-post","status-publish","format-standard","hentry","category-accounting","no-featured-image-padding"],"yoast_head":"\n\n