Disclosure Requirements

Question 1

Recurring Basis

Answer 1

FV is determined and applied to an item period after period

Question 2

Non-recurring Basis

Answer 2

FV is determined and applied only when certain conditions or situations occur

Question 3

Disclosure Requirements is used on Nonrecurring Basis

Answer 3

• FV at reporting date and reasons for measurement
• level of fair value hierarchy within which measurements fall
• for measurements in level 2 and 3
• a description of the valuation process used
• quantitative information about unobservable inputs used
• if the highest and best use of non financial assets differ from current use then disclose the fact and why

Question 4

Disclosure for FV option

Answer 4

• identify items to which the FV option is applied and reasons for electing the FV option
• information enable users to understand how FV is applied for each item (methods and assumptions)
• the amount of gains and losses associate with the FV change