IFRS 13 seeks to mitigate the problems associated with measurement under level 3 of the hierarchy by;
A)means of estimation
B)means of disclosure
C)means of reference to indices
D)by means of reference to averages

Question

Quizplus · Accepted Answer

IFRS 13 seeks to mitigate the problems associated with measurement under level 3 of the hierarchy by means of disclosure, providing more information about the inputs and assumptions used in the valuation, as well as the extent to which unobservable inputs were used. This increases the transparency and comparability of the financial statements. Means of estimation (A) are already used in the valuation of level 3 assets, while reference to indices (C) and averages (D) are not specific approaches prescribed by IFRS 13 for mitigating the problems associated with level 3 measurements.

IFRS 13 Seeks to Mitigate the Problems Associated with Measurement