The FASB and IASB have concluded that derivatives should be measured at:
A)Fair value
B)Cost
C)The lower of cost or fair value
D)Cost less accumulated amortisation

Question

Quizplus · Accepted Answer

The FASB and IASB require that derivatives be measured at fair value. This means the value at which an asset can be exchanged or a liability settled between knowledgeable, willing parties in an arm's length transaction. Fair value provides more relevant information on financial instruments than historical cost or amortization.

The FASB and IASB Have Concluded That Derivatives Should Be