Question

Which of the following statements, if any, concerning disclosures about fair value measurements in periods subsequent to initial recognition is/are correct?I. The fair value hierarchy level within which fair value measurements fall must be disclosed.II. Quantitative fair value measurement disclosures must be in tabular format.a) Both I and II are correct.b) I only.c) II only.d) Neither I nor II are correct.

Answer 1

Answer:

A) Both I and II are correct.

Explanation:

The determination of fair value is based on a hypothetical transaction and on the use of a hypothetical exit price. If you will make any disclosures regarding fair value measurements in subsequent periods after the initial measurement was determined, you must:

• disclose the fair value amounts separately for every level of the fair value hierarchy when disclosing fair value measurements.
• use tabular formats when making quantitative disclosures.