The 'Fair Value Hierarchy' under Ind AS 113 categorises inputs into: MCQ with Answer and Explanation

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The 'Fair Value Hierarchy' under Ind AS 113 categorises inputs into:

A. Level 1, Level 2, Level 3

B. Market and Cost

C. Direct and Indirect

D. Primary and Secondary

Answer: Option A

Solution (By JKSSB Mock Tests)

Level 1: quoted prices; Level 2: observable inputs other than quoted prices; Level 3: unobservable inputs.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Question #1

Ind AS (Indian Accounting Standards) are converged with:

A. US GAAP

B. UK GAAP

C. Chinese Accounting Standards

D. IFRS (International Financial Reporting Standards)

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Correct Answer: Option D

Explanation:
To align with global practices, India developed Ind AS which are substantially converged with IFRS.

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Question #2

The 'Contract Costs' under Ind AS 115 include:

A. All costs

B. Only direct labour

C. Incremental costs of obtaining a contract and costs to fulfil a contract that are not covered by other standards

D. Only material

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Correct Answer: Option C

Explanation:
Incremental costs (like sales commissions) are capitalised if expected to be recovered.

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Question #3

The primary goal of financial management is:

A. Minimising risk

B. Maximising revenue

C. Maximising earnings per share (EPS)

D. Maximising shareholder wealth

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Correct Answer: Option D

Explanation:
The prime objective is wealth maximisation, reflected in market value of shares.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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