{"entries":[{"key":"LX.IFRS13.000001","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.SCOPE.OBJECTIVE_AND_NATURE"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"FV_MARKET_BASED","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IFRS13.000001","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000001","section_id":"rule-objective"},"references":["IFRS 13 §2"],"exercise":{"prompt":{"fr":"","en":"Which sentence best describes fair value under IFRS 13?","es":""},"explanation":{"fr":"","en":"Fair value rests on a hypothetical orderly transaction between market participants (IFRS 13).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The amount the entity estimates the asset is worth for its business","es":""},"correct":false,"feedback":{"fr":"","en":"That definition is entity-specific; fair value is market-based (IFRS 13).","es":""}},{"id":"B","text":{"fr":"","en":"Acquisition cost less depreciation","es":""},"correct":false,"feedback":{"fr":"","en":"That is a cost-based carrying amount, not a market measurement (IFRS 13).","es":""}},{"id":"C","text":{"fr":"","en":"A measurement based on a hypothetical orderly transaction between market participants","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000002","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.SCOPE.OBJECTIVE_AND_NATURE"],"dimension":"RECOGNITION","format":"FILL_BLANK","context":"GENERIC","tested_point":"FV_NO_OBSERVABLE_PRICE","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IFRS13.000001","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000001","section_id":"rule-objective"},"references":["IFRS 13 §2","IFRS 13 §3"],"exercise":{"prompt":{"fr":"","en":"Complete the sentence.","es":""},"explanation":{"fr":"","en":"Rule to remember: without an observable price the market objective remains and a valuation technique estimates the exit price (IFRS 13).","es":""},"common_error":{"fr":"","en":"Believing that without an observable price the entity uses its own value or a replacement value: the objective remains a market price.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Fair value is a measurement based on the {{base}}; without an observable price, the entity uses a valuation {{outil}}.","es":""},"blanks":[{"id":"base","mode":"CHOICE","choices":[{"id":"MARKET","text":{"fr":"","en":"market","es":""}},{"id":"ENTITY","text":{"fr":"","en":"entity's choice","es":""}}],"answer":"MARKET"},{"id":"outil","mode":"CHOICE","choices":[{"id":"TECHNIQUE","text":{"fr":"","en":"technique","es":""}},{"id":"SUBSTITUTE","text":{"fr":"","en":"imposed replacement value","es":""}}],"answer":"TECHNIQUE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000003","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.SCOPE.APPLICABILITY"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"RETAIL","tested_point":"FV_NOT_IMPOSED","difficulty":"BEGINNER","estimated_time_s":30,"lesson_id":"LS.IFRS13.000001","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000001","section_id":"rule-applicability"},"references":["IFRS 13 §5"],"exercise":{"prompt":{"fr":"","en":"A finance director says: 'IFRS 13 requires us to move all our inventories to fair value.' The statement is correct.","es":""},"explanation":{"fr":"","en":"IFRS 13 does not say when to measure at fair value; it applies if another standard requires or permits it. Rule to remember: the question 'must we?' is answered in the item's own standard.","es":""},"common_error":{"fr":"","en":"Mistaking a how-to standard for a measurement-basis standard.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000004","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.SCOPE.APPLICABILITY"],"dimension":"RECOGNITION","format":"MATCHING","context":"GENERIC","tested_point":"WHO_ANSWERS_WHAT","difficulty":"BEGINNER","estimated_time_s":75,"lesson_id":"LS.IFRS13.000001","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000001","section_id":"rule-applicability"},"references":["IFRS 13 §5","IFRS 13 §8"],"exercise":{"prompt":{"fr":"","en":"Match each question to the standard that answers it.","es":""},"explanation":{"fr":"","en":"IFRS 13 supplies the method; the item's standard says whether fair value is required or permitted. Rule to remember: 'whether' sits in the item's standard, 'how' in IFRS 13.","es":""},"common_error":{"fr":"","en":"Looking to IFRS 13 to know whether an item may be revalued: the item's standard says so; IFRS 13 says how to measure.","es":""},"format":"MATCHING","left":[{"id":"L1","text":{"fr":"","en":"May this asset be revalued?","es":""}},{"id":"L2","text":{"fr":"","en":"How is the exit price determined?","es":""}}],"right":[{"id":"R3","text":{"fr":"","en":"The inventories standard","es":""}},{"id":"R2","text":{"fr":"","en":"IFRS 13","es":""}},{"id":"R1","text":{"fr":"","en":"The standard on the asset","es":""}}],"pairs":[{"left":"L1","right":"R1"},{"left":"L2","right":"R2"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000005","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.SCOPE.EXCLUSIONS"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"IN_OR_OUT_OF_FRAMEWORK","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS13.000001","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000001","section_id":"exclusions"},"references":["IFRS 13 §6"],"exercise":{"prompt":{"fr":"","en":"Classify each item: does it fall within the IFRS 13 fair value measurement framework?","es":""},"explanation":{"fr":"","en":"Share-based payments, net realisable value and value in use are outside the framework (IFRS 13, para. 6). Rule to remember: a neighbouring measure is not a fair value.","es":""},"common_error":{"fr":"","en":"Applying the market framework to an internal measure.","es":""},"format":"CLASSIFICATION","categories":[{"id":"IN","text":{"fr":"","en":"Within the framework","es":""}},{"id":"OUT","text":{"fr":"","en":"Outside: excluded or neighbouring measure","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Share option granted to employees (share-based payment)","es":""},"category":"OUT"},{"id":"I2","text":{"fr":"","en":"Value in use of an asset tested under IAS 36","es":""},"category":"OUT"},{"id":"I3","text":{"fr":"","en":"Net realisable value of inventories (IAS 2)","es":""},"category":"OUT"},{"id":"I4","text":{"fr":"","en":"Quoted security measured at fair value under another standard","es":""},"category":"IN"},{"id":"I5","text":{"fr":"","en":"Building revalued at fair value under a revaluation model","es":""},"category":"IN"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000006","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.SCOPE.EXCLUSIONS"],"dimension":"RECOGNITION","format":"ERROR_SPOT","context":"MEDIA","tested_point":"EXCLUSIONS_ERRORS","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IFRS13.000001","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000001","section_id":"exclusions"},"references":["IFRS 13 §6"],"exercise":{"prompt":{"fr":"","en":"Spot the incorrect statements about the scope of IFRS 13.","es":""},"explanation":{"fr":"","en":"Rule to remember: share-based payments and leases are excluded; net realisable value and value in use are not fair values (IFRS 13, para. 6).","es":""},"common_error":{"fr":"","en":"Mixing scope exclusions and neighbouring measures.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"Lease transactions fall within the IFRS 13 measurement framework.","es":""},"erroneous":true,"correction":{"fr":"","en":"Lease transactions (IFRS 16) are excluded from scope (IFRS 13, para. 6).","es":""}},{"id":"S2","text":{"fr":"","en":"The net realisable value of IAS 2 resembles fair value without being fair value.","es":""},"erroneous":false},{"id":"S3","text":{"fr":"","en":"Value in use under IAS 36 is an entity-level fair value.","es":""},"erroneous":true,"correction":{"fr":"","en":"Value in use is not a fair value: it is a neighbouring measure outside the framework (IFRS 13, para. 6).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000007","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.SCOPE.DISCLOSURE_EXEMPTIONS"],"dimension":"RULE_KNOWLEDGE","format":"MULTIPLE_CHOICE","context":"FINANCE","tested_point":"DISCLOSURE_EXEMPTION_SCOPE","difficulty":"ADVANCED","estimated_time_s":60,"lesson_id":"LS.IFRS13.000001","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000001","section_id":"exclusions"},"references":["IFRS 13 §7"],"exercise":{"prompt":{"fr":"","en":"Which statements about IFRS 13 disclosure exemptions are correct? (more than one)","es":""},"explanation":{"fr":"","en":"The exemptions concern disclosure, for specific items, with no measurement exemption (IFRS 13, para. 7).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"They concern disclosures, not measurement","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"They also exempt the item from measurement under the IFRS 13 framework","es":""},"correct":false,"feedback":{"fr":"","en":"The item is still measured under the framework; only the disclosures are exempt (IFRS 13, para. 7).","es":""}},{"id":"C","text":{"fr":"","en":"They apply to all financial assets measured at fair value","es":""},"correct":false,"feedback":{"fr":"","en":"The exemptions target specific items (certain employee benefit plan assets, assets at recoverable amount based on net fair value) (IFRS 13, para. 7).","es":""}},{"id":"D","text":{"fr":"","en":"They cover, among others, assets whose recoverable amount is fair value less costs of disposal","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000008","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.SCOPE.APPLICABILITY"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"FOOD_BEVERAGE","tested_point":"SCOPE_MINI_CASE","difficulty":"EXPERT","estimated_time_s":240,"lesson_id":"LS.IFRS13.000001","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000001","section_id":"judgment"},"references":["IFRS 13 §5","IFRS 13 §6","IFRS 13 §8"],"exercise":{"prompt":{"fr":"","en":"Analyse the three items of the fictitious company Vinalis.","es":""},"explanation":{"fr":"","en":"Rule to remember: the other standard decides whether fair value applies; IFRS 13 decides how to determine it.","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Vinalis (a fictitious company) reviews before year end: (a) a cellar that its property, plant and equipment standard allows it to revalue and that it plans to revalue; (b) bottles in stock measured at net realisable value; (c) a share option plan for its managers. The finance director proposes to 'move everything to IFRS 13 fair value'.","es":""},"exhibits":[],"parts":[{"prompt":{"fr":"","en":"For which item does the IFRS 13 measurement framework supply the method?","es":""},"explanation":{"fr":"","en":"The framework applies when another standard requires or permits fair value, subject to exclusions (IFRS 13, para. 6).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The cellar (a), because another standard permits fair value","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The bottles (b), because their net realisable value is a fair value","es":""},"correct":false,"feedback":{"fr":"","en":"Net realisable value is a neighbouring measure that is not a fair value (IFRS 13, para. 6).","es":""}},{"id":"C","text":{"fr":"","en":"The option plan (c), because it is linked to the equity market","es":""},"correct":false,"feedback":{"fr":"","en":"Share-based payments are excluded from scope (IFRS 13, para. 6).","es":""}}],"id":"P1","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"The proposal to 'move everything to IFRS 13 fair value' is well founded.","es":""},"explanation":{"fr":"","en":"IFRS 13 does not say when to measure at fair value. Rule to remember: each item follows its own standard.","es":""},"common_error":{"fr":"","en":"Thinking IFRS 13 permits measuring everything at fair value: it only sets how to measure, not when.","es":""},"format":"TRUE_FALSE","answer":false,"id":"P2","dimension":"ANALYSIS"},{"prompt":{"fr":"","en":"What should the professional record in the file about item (a)?","es":""},"explanation":{"fr":"","en":"Professional judgment: keep the classification reasoning and the standard that permits fair value.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The classification of the item, the standard permitting fair value and the choice made","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Only the final fair value amount","es":""},"correct":false,"feedback":{"fr":"","en":"Without the classification and the enabling standard the amount cannot be defended; the reasoning is part of the file.","es":""}},{"id":"C","text":{"fr":"","en":"Nothing: IFRS 13 requires revaluation","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 13 does not require revaluation; the item's standard permits it.","es":""}}],"id":"P3","dimension":"PROFESSIONAL_JUDGMENT"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000009","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.SCOPE.OBJECTIVE_AND_NATURE"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"ENERGY","tested_point":"FV_ENTITY_VIEW_ERROR","difficulty":"INTERMEDIATE","estimated_time_s":45,"lesson_id":"LS.IFRS13.000001","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000001","section_id":"rule-objective"},"references":["IFRS 13 §2","IFRS 13 §3"],"exercise":{"prompt":{"fr":"","en":"An entity values its turbine at €900,000 'for its own use'; buyers would pay only €700,000. Which amount reflects fair value?","es":""},"explanation":{"fr":"","en":"Fair value is market-based; the entity's intention is not relevant (IFRS 13).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"€700,000, the price market participants would pay (case data)","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"€900,000, because the entity knows the asset best","es":""},"correct":false,"feedback":{"fr":"","en":"Fair value uses market participants' assumptions, not the entity's own value (IFRS 13).","es":""}},{"id":"C","text":{"fr":"","en":"€800,000, the average of the two","es":""},"correct":false,"feedback":{"fr":"","en":"Averaging an entity value and a market price has no basis: only the market's point of view counts (IFRS 13).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000010","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.DEFINITION.EXIT_PRICE"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"ENTRY_VS_EXIT","difficulty":"BEGINNER","estimated_time_s":30,"lesson_id":"LS.IFRS13.000002","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000002","section_id":"understand"},"references":["IFRS 13 §9"],"exercise":{"prompt":{"fr":"","en":"Fair value is an exit price: what would be received by selling an asset or paid by transferring a liability.","es":""},"explanation":{"fr":"","en":"Rule to remember: fair value is an exit price at the measurement date (IFRS 13, para. 9).","es":""},"common_error":{"fr":"","en":"Thinking it is the acquisition price.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000011","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.DEFINITION.EXIT_PRICE"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"AUTOMOTIVE","tested_point":"EXIT_PRICE_IDENTIFY","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IFRS13.000002","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000002","section_id":"rule-definition"},"references":["IFRS 13 §9","IFRS 13 §24"],"exercise":{"prompt":{"fr":"","en":"Garage Brenval (fictitious) bought a press for €500,000. Informed buyers would offer €430,000 today (case data). Which amount is an exit price?","es":""},"explanation":{"fr":"","en":"The exit price is what informed buyers would pay at the measurement date (IFRS 13, para. 9).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"€500,000, the price paid","es":""},"correct":false,"feedback":{"fr":"","en":"That is the entry price, paid to acquire the asset; it is not the price that would be received on exit (IFRS 13, para. 9).","es":""}},{"id":"B","text":{"fr":"","en":"€470,000, the average of the two","es":""},"correct":false,"feedback":{"fr":"","en":"No rule asks to average an entry price and an exit price; only the exit price counts (IFRS 13, para. 9).","es":""}},{"id":"C","text":{"fr":"","en":"€430,000, the price an informed buyer would pay","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000012","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.DEFINITION.MARKET_PARTICIPANTS"],"dimension":"RULE_KNOWLEDGE","format":"MATCHING","context":"GENERIC","tested_point":"PARTICIPANT_TRAITS","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS13.000002","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000002","section_id":"rule-participants"},"references":["IFRS 13 §22","IFRS 13 §23","IFRS 13"],"exercise":{"prompt":{"fr":"","en":"Match each market participant characteristic to its meaning.","es":""},"explanation":{"fr":"","en":"Independence, knowledge, ability and willingness define market participants (IFRS 13, Appendix A); the entity describes their profile without identifying a specific buyer. Rule to remember: the entity describes these traits without identifying a specific buyer.","es":""},"common_error":{"fr":"","en":"Trying to identify a specific buyer: the entity describes the market participants' profile without naming them.","es":""},"format":"MATCHING","left":[{"id":"L1","text":{"fr":"","en":"Independent","es":""}},{"id":"L2","text":{"fr":"","en":"Knowledgeable","es":""}},{"id":"L3","text":{"fr":"","en":"Able","es":""}},{"id":"L4","text":{"fr":"","en":"Willing","es":""}}],"right":[{"id":"R2","text":{"fr":"","en":"Reasonable information about the item","es":""}},{"id":"R5","text":{"fr":"","en":"Related to the entity","es":""}},{"id":"R3","text":{"fr":"","en":"In a position to complete the transaction","es":""}},{"id":"R1","text":{"fr":"","en":"No link that would distort the price","es":""}},{"id":"R4","text":{"fr":"","en":"Motivated without being compelled","es":""}}],"pairs":[{"left":"L1","right":"R1"},{"left":"L2","right":"R2"},{"left":"L3","right":"R3"},{"left":"L4","right":"R4"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000013","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.DEFINITION.ASSET_LIABILITY_CHARACTERISTICS"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"RETAIL","tested_point":"CHARACTERISTICS_CLASSIFY","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS13.000002","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000002","section_id":"rule-intent"},"references":["IFRS 13 §11","IFRS 13 §12"],"exercise":{"prompt":{"fr":"","en":"Classify each item: characteristic of the asset that may enter the price, or entity-specific element with no effect on fair value.","es":""},"explanation":{"fr":"","en":"The item's characteristics (condition, location, restrictions) enter the price if the market takes them into account (IFRS 13). Rule to remember: the entity's intention and needs are not part of it (IFRS 13).","es":""},"common_error":{"fr":"","en":"Treating management's intention as a characteristic.","es":""},"format":"CLASSIFICATION","categories":[{"id":"CHAR","text":{"fr":"","en":"Characteristic of the asset","es":""}},{"id":"ENTITY","text":{"fr":"","en":"Entity-specific","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Physical condition of the store","es":""},"category":"CHAR"},{"id":"I2","text":{"fr":"","en":"Location of the store","es":""},"category":"CHAR"},{"id":"I3","text":{"fr":"","en":"Restriction affecting the sale of the premises","es":""},"category":"CHAR"},{"id":"I4","text":{"fr":"","en":"Management's intention to keep the store","es":""},"category":"ENTITY"},{"id":"I5","text":{"fr":"","en":"Entity's own cash need","es":""},"category":"ENTITY"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000014","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.DEFINITION.ENTITY_INTENT_IRRELEVANT"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"ENERGY","tested_point":"INTENT_FILL","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS13.000002","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000002","section_id":"rule-intent"},"references":["IFRS 13 §3"],"exercise":{"prompt":{"fr":"","en":"Complete the sentence.","es":""},"explanation":{"fr":"","en":"Rule to remember: the intention to hold or sell is not relevant; market participants' assumptions are used (IFRS 13).","es":""},"common_error":{"fr":"","en":"Using the intent to keep the asset as a fair value factor: only market participants' assumptions count.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"The entity's intention to {{action}} the asset is {{statut}} for fair value.","es":""},"blanks":[{"id":"action","mode":"CHOICE","choices":[{"id":"HOLD","text":{"fr":"","en":"hold or sell","es":""}},{"id":"NONE","text":{"fr":"","en":"never sell","es":""}}],"answer":"HOLD"},{"id":"statut","mode":"CHOICE","choices":[{"id":"IRR","text":{"fr":"","en":"not relevant","es":""}},{"id":"KEY","text":{"fr":"","en":"decisive","es":""}}],"answer":"IRR"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000015","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.DEFINITION.EXIT_PRICE"],"dimension":"APPLICATION","format":"ORDERING","context":"GENERIC","tested_point":"FV_STEPS_ORDER","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS13.000002","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000002","section_id":"how"},"references":["IFRS 13 §9","IFRS 13 §10","IFRS 13 §11","IFRS 13 §23"],"exercise":{"prompt":{"fr":"","en":"Put in order the (teaching) approach to set an exit price.","es":""},"explanation":{"fr":"","en":"Approach: frame the item and the market before estimating the exit price (IFRS 13, para. 9). Rule to remember: this order is a teaching approach, not a sequence imposed by the standard.","es":""},"common_error":{"fr":"","en":"Estimating the price before identifying the item, its characteristics and the participants, or letting the entity's intent play a role.","es":""},"format":"ORDERING","steps":[{"id":"S1","text":{"fr":"","en":"Identify the asset or liability measured","es":""}},{"id":"S2","text":{"fr":"","en":"List its characteristics used by the market","es":""}},{"id":"S3","text":{"fr":"","en":"Describe the market participants","es":""}},{"id":"S4","text":{"fr":"","en":"Set aside the entity's intention","es":""}},{"id":"S5","text":{"fr":"","en":"Estimate the exit price at the measurement date","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000016","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.DEFINITION.MARKET_PARTICIPANTS"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"TELECOM","tested_point":"PARTICIPANT_ERRORS","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IFRS13.000002","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000002","section_id":"rule-participants"},"references":["IFRS 13 §22","IFRS 13 §23"],"exercise":{"prompt":{"fr":"","en":"Spot the flawed reasoning about market participants.","es":""},"explanation":{"fr":"","en":"Rule to remember: market assumptions; a participant profile described, not named (IFRS 13).","es":""},"common_error":{"fr":"","en":"Substituting management's view for the market's.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"The assumptions used are those of market participants acting in their best economic interests.","es":""},"erroneous":false},{"id":"S2","text":{"fr":"","en":"Management's assumptions prevail since it knows the asset better.","es":""},"erroneous":true,"correction":{"fr":"","en":"It is the market participants' assumptions that prevail, not the entity's (IFRS 13).","es":""}},{"id":"S3","text":{"fr":"","en":"The entity must identify each potential buyer by name.","es":""},"erroneous":true,"correction":{"fr":"","en":"The entity describes the participants' characteristics without identifying them (IFRS 13).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000017","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.DEFINITION.ASSET_LIABILITY_CHARACTERISTICS"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"PHARMA","tested_point":"DEFINITION_MINI_CASE","difficulty":"EXPERT","estimated_time_s":240,"lesson_id":"LS.IFRS13.000002","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000002","section_id":"judgment"},"references":["IFRS 13 §3","IFRS 13 §11","IFRS 13 §12","IFRS 13 §23"],"exercise":{"prompt":{"fr":"","en":"Analyse the measurement of Pharmoréal's warehouse.","es":""},"explanation":{"fr":"","en":"Rule to remember: a typical buyer's exit price, condition and location taken into account, intention set aside (IFRS 13).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Pharmoréal (a fictitious company) measures a cold-storage warehouse. Case data: management wants to keep it for ten years; the warehouse is far from major roads; the typical logistics buyer would pay €1,200,000; a real estate fund would pay €1,050,000 but would not be interested in a remote cold-storage warehouse; management personally prefers €1,400,000.","es":""},"exhibits":[],"parts":[{"prompt":{"fr":"","en":"Which participant profile does the entity describe?","es":""},"explanation":{"fr":"","en":"The entity describes participants from the asset and the market concerned (IFRS 13).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A typical logistics buyer, interested in a cold-storage warehouse","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Pharmoréal's own management","es":""},"correct":false,"feedback":{"fr":"","en":"Management's assumptions are not those of independent market participants (IFRS 13).","es":""}},{"id":"C","text":{"fr":"","en":"A fund with no interest in this type of asset","es":""},"correct":false,"feedback":{"fr":"","en":"Participants are described from the asset and the market concerned; a fund with no interest in the asset is not the relevant profile (IFRS 13).","es":""}}],"id":"P1","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"Which amount is used as the exit price?","es":""},"explanation":{"fr":"","en":"Exit price = price of the relevant participant, the typical logistics buyer = €1,200,000. Excluded: €1,400,000 (management's personal preference) and €1,050,000 (a fund not interested in a remote cold store). Key rule: use the relevant participant's price, without management's intent or preference (IFRS 13).","es":""},"common_error":{"fr":"","en":"Using management's 1,400,000 preference or the price of a fund not interested in this type of asset.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Typical logistics buyer's price","es":""},"value":"1200000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Exit price used","es":""},"answer":1200000,"tolerance":0,"unit":"EUR"}],"id":"P2","dimension":"APPLICATION"},{"prompt":{"fr":"","en":"The file should explain why management's intention and its €1,400,000 preference were set aside.","es":""},"explanation":{"fr":"","en":"Professional judgment: justify setting aside the entity's own intention and preference (IFRS 13). Rule to remember: the justification is part of demonstrating fair value.","es":""},"common_error":{"fr":"","en":"Setting aside management's intent without justifying it in the file: demonstrating fair value requires it.","es":""},"format":"TRUE_FALSE","answer":true,"id":"P3","dimension":"PROFESSIONAL_JUDGMENT"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000018","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.DEFINITION.MARKET_PARTICIPANTS"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MULTIPLE_CHOICE","context":"FINANCE","tested_point":"PARTICIPANT_JUSTIFY","difficulty":"ADVANCED","estimated_time_s":60,"lesson_id":"LS.IFRS13.000002","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000002","section_id":"judgment"},"references":["IFRS 13 §22","IFRS 13 §23"],"exercise":{"prompt":{"fr":"","en":"A niche asset has only one type of industrial buyer. Which elements support the description of the participants' profile? (more than one)","es":""},"explanation":{"fr":"","en":"Professional judgment: support the profile with the asset, the market and observed transactions (IFRS 13).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The price management would like to obtain","es":""},"correct":false,"feedback":{"fr":"","en":"The price the entity would like is not a participant characteristic (IFRS 13).","es":""}},{"id":"B","text":{"fr":"","en":"The nature of the asset and the market in which it trades","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Comparable transactions observed between independent parties","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Management's strategic plan for the asset","es":""},"correct":false,"feedback":{"fr":"","en":"An entity-specific plan is not an element describing market participants (IFRS 13).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000019","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.UNIT.UNIT_OF_ACCOUNT"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"UNIT_DEFINITION","difficulty":"BEGINNER","estimated_time_s":30,"lesson_id":"LS.IFRS13.000003","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000003","section_id":"rule"},"references":["IFRS 13 §13"],"exercise":{"prompt":{"fr":"","en":"The item measured at fair value may be a stand-alone asset or a group of items.","es":""},"explanation":{"fr":"","en":"Rule to remember: it depends on the unit of account (IFRS 13, para. 13).","es":""},"common_error":{"fr":"","en":"Thinking that a single asset is always measured.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000020","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.UNIT.UNIT_OF_ACCOUNT"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"UNIT_WHO_SETS","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IFRS13.000003","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000003","section_id":"rule"},"references":["IFRS 13 §14"],"exercise":{"prompt":{"fr":"","en":"Who sets the unit of account of an item measured at fair value?","es":""},"explanation":{"fr":"","en":"The unit is set by the standard that requires or permits fair value (IFRS 13, para. 14).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The entity's management, depending on the item's use","es":""},"correct":false,"feedback":{"fr":"","en":"The unit follows from the item's standard, not from a management choice (IFRS 13, para. 14).","es":""}},{"id":"B","text":{"fr":"","en":"The market, at the measurement date","es":""},"correct":false,"feedback":{"fr":"","en":"The market sets a price, not the entity's unit of account (IFRS 13, para. 14).","es":""}},{"id":"C","text":{"fr":"","en":"The standard that requires or permits fair value","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"IFRS 13 itself","es":""},"correct":false,"feedback":{"fr":"","en":"As a general rule, IFRS 13 does not set the unit: the item's standard does, subject to the provisions of IFRS 13 (IFRS 13, para. 14).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000021","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.UNIT.UNIT_OF_ACCOUNT"],"dimension":"APPLICATION","format":"MATCHING","context":"GENERIC","tested_point":"UNIT_MATCH","difficulty":"BEGINNER","estimated_time_s":75,"lesson_id":"LS.IFRS13.000003","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000003","section_id":"rule"},"references":["IFRS 13 §13","IFRS 13 §14"],"exercise":{"prompt":{"fr":"","en":"Match each question with what answers it.","es":""},"explanation":{"fr":"","en":"Rule to remember: the item's standard sets the unit, IFRS 13 supplies the measurement method (IFRS 13, paras. 13 and 14).","es":""},"common_error":{"fr":"","en":"Expecting IFRS 13 to set the unit of account: the item's standard determines it.","es":""},"format":"MATCHING","left":[{"id":"L1","text":{"fr":"","en":"Do we measure one machine or the whole line?","es":""}},{"id":"L2","text":{"fr":"","en":"What exit price would a participant pay?","es":""}}],"right":[{"id":"R3","text":{"fr":"","en":"Management's preference","es":""}},{"id":"R2","text":{"fr":"","en":"The IFRS 13 measurement framework","es":""}},{"id":"R1","text":{"fr":"","en":"The item's standard (unit of account)","es":""}}],"pairs":[{"left":"L1","right":"R1"},{"left":"L2","right":"R2"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000022","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.UNIT.UNIT_OF_ACCOUNT"],"dimension":"CALCULATION","format":"CALCULATION","context":"INDUSTRIAL","tested_point":"UNIT_NUMERIC","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IFRS13.000003","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000003","section_id":"numeric"},"references":["IFRS 13 §13","IFRS 13 §14"],"exercise":{"prompt":{"fr":"","en":"Teaching assumption: the unit used is each machine on its own. Calculate the total fair value.","es":""},"explanation":{"fr":"","en":"100,000 + 120,000 + 80,000 = 300,000. The line price (330,000) does not apply because the unit used is the stand-alone machine. Rule to remember: the value depends on the unit set by the item's standard (IFRS 13, paras. 13 and 14).","es":""},"common_error":{"fr":"","en":"Using the group price when the unit is the stand-alone item.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Machine 1 (stand-alone price)","es":""},"value":"100000","unit":"EUR"},{"label":{"fr":"","en":"Machine 2 (stand-alone price)","es":""},"value":"120000","unit":"EUR"},{"label":{"fr":"","en":"Machine 3 (stand-alone price)","es":""},"value":"80000","unit":"EUR"},{"label":{"fr":"","en":"Price of the complete line","es":""},"value":"330000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Total fair value (unit = each machine)","es":""},"answer":300000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Total fair value (unit = each machine)","es":""},"expression":"a + b + c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Machine 1 (stand-alone price)","es":""},"value":100000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Machine 2 (stand-alone price)","es":""},"value":120000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Machine 3 (stand-alone price)","es":""},"value":80000,"unit":"EUR"}],"result":300000,"unit":"EUR"}],"rationale":{"fr":"","en":"the value depends on the unit set by the item's standard (IFRS 13, paras. 13 and 14).","es":""},"references":["REF.IFRS13.13","REF.IFRS13.14"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000023","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.UNIT.UNIT_OF_ACCOUNT"],"dimension":"CALCULATION","format":"CALCULATION","context":"INDUSTRIAL","tested_point":"UNIT_NUMERIC_GROUP","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IFRS13.000003","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000003","section_id":"numeric"},"references":["IFRS 13 §13","IFRS 13 §14"],"exercise":{"prompt":{"fr":"","en":"Teaching assumption: the item's standard in the example uses the line as the unit. Calculate the fair value and the difference with the sum of stand-alone prices.","es":""},"explanation":{"fr":"","en":"Group price 330,000; 330,000 − 300,000 = 30,000. Rule to remember: if the unit is the group, the group price is used, even if it differs from the sum of the items (IFRS 13, paras. 13 and 14).","es":""},"common_error":{"fr":"","en":"Adding stand-alone prices when the unit is a group.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Stand-alone prices: 100,000 + 120,000 + 80,000","es":""},"value":"300000","unit":"EUR"},{"label":{"fr":"","en":"Price of the complete line","es":""},"value":"330000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Fair value (unit = line)","es":""},"answer":330000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Difference with the sum of stand-alone prices","es":""},"answer":30000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S2","meaning":{"fr":"","en":"Difference with the sum of stand-alone prices","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Price of the complete line","es":""},"value":330000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Stand-alone prices: 100,000 + 120,000 + 80,000","es":""},"value":300000,"unit":"EUR"}],"result":30000,"unit":"EUR"}],"rationale":{"fr":"","en":"if the unit is the group, the group price is used, even if it differs from the sum of the items (IFRS 13, paras. 13 and 14).","es":""},"references":["REF.IFRS13.13","REF.IFRS13.14"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000024","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.UNIT.UNIT_OF_ACCOUNT"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"GENERIC","tested_point":"UNIT_ERRORS","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IFRS13.000003","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000003","section_id":"pitfalls"},"references":["IFRS 13 §13","IFRS 13 §14"],"exercise":{"prompt":{"fr":"","en":"Spot the incorrect statements about the unit of account.","es":""},"explanation":{"fr":"","en":"Rule to remember: the item measured can be stand-alone or grouped depending on the item's standard (IFRS 13, paras. 13 and 14).","es":""},"common_error":{"fr":"","en":"Believing the unit is freely chosen.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"The unit is freely chosen by the entity to obtain the highest amount.","es":""},"erroneous":true,"correction":{"fr":"","en":"The unit follows from the standard that requires or permits fair value (IFRS 13, para. 14).","es":""}},{"id":"S2","text":{"fr":"","en":"A group of assets can be the unit of account.","es":""},"erroneous":false},{"id":"S3","text":{"fr":"","en":"IFRS 13 requires asset-by-asset measurement everywhere.","es":""},"erroneous":true,"correction":{"fr":"","en":"Apart from the provisions of IFRS 13, the item's standard sets the unit; IFRS 13 does not require asset-by-asset measurement everywhere (IFRS 13, para. 14).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000025","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.UNIT.UNIT_OF_ACCOUNT"],"dimension":"RECOGNITION","format":"FILL_BLANK","context":"GENERIC","tested_point":"UNIT_FILL","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS13.000003","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000003","section_id":"rule"},"references":["IFRS 13 §13","IFRS 13 §14"],"exercise":{"prompt":{"fr":"","en":"Complete the sentence.","es":""},"explanation":{"fr":"","en":"Rule to remember: group or stand-alone item, depending on the standard that requires or permits fair value (IFRS 13, paras. 13 and 14).","es":""},"common_error":{"fr":"","en":"Letting management choose the unit: it follows from the standard that requires or permits fair value.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"The item measured is a stand-alone item or a {{type}}; the unit is set by {{qui}}.","es":""},"blanks":[{"id":"type","mode":"CHOICE","choices":[{"id":"GROUP","text":{"fr":"","en":"group","es":""}},{"id":"PRICE","text":{"fr":"","en":"price","es":""}}],"answer":"GROUP"},{"id":"qui","mode":"CHOICE","choices":[{"id":"STD","text":{"fr":"","en":"the item's standard","es":""}},{"id":"MGT","text":{"fr":"","en":"management","es":""}}],"answer":"STD"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000026","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.UNIT.UNIT_OF_ACCOUNT"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"ENERGY","tested_point":"UNIT_MINI_CASE","difficulty":"EXPERT","estimated_time_s":240,"lesson_id":"LS.IFRS13.000003","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000003","section_id":"judgment"},"references":["IFRS 13 §13","IFRS 13 §14"],"exercise":{"prompt":{"fr":"","en":"Analyse the file of the fictitious company Éolane on its wind turbine park.","es":""},"explanation":{"fr":"","en":"Rule to remember: the unit comes from the standard that requires or permits fair value (IFRS 13, para. 14).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Éolane (a fictitious company) measures a park of 5 wind turbines. Case data: stand-alone price of each turbine €400,000; price of the complete park €2,150,000; the item's standard, in this example, uses the park as the unit. The director proposes to use 5 × €400,000 because 'it is simpler'.","es":""},"exhibits":[],"parts":[{"prompt":{"fr":"","en":"What is the park's fair value under the example's unit?","es":""},"explanation":{"fr":"","en":"Fair value = price of the whole farm = €2,150,000, not 5 × €400,000 = €2,000,000, because the item's standard here uses the farm as the unit. Key rule: since the item's unit is the farm, use the farm's price (IFRS 13, paras. 13 and 14).","es":""},"common_error":{"fr":"","en":"Adding up stand-alone prices (5 × €400,000) because it is simpler: the unit set by the item's standard is the farm.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Price of the complete park","es":""},"value":"2150000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Fair value of the park","es":""},"answer":2150000,"tolerance":0,"unit":"EUR"}],"id":"P1","dimension":"APPLICATION"},{"prompt":{"fr":"","en":"What is the difference with the director's proposal?","es":""},"explanation":{"fr":"","en":"2,150,000 − 2,000,000 = 150,000. Rule to remember: simplicity is not a criterion for choosing the unit (IFRS 13, para. 14).","es":""},"common_error":{"fr":"","en":"Dismissing the difference because the method is simpler: simplicity does not allow a change of unit.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Proposal: 5 × 400,000","es":""},"value":"2000000","unit":"EUR"},{"label":{"fr":"","en":"Complete park","es":""},"value":"2150000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Difference","es":""},"answer":150000,"tolerance":0,"unit":"EUR"}],"id":"P2","dimension":"CALCULATION","formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Difference","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Complete park","es":""},"value":2150000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Proposal: 5 × 400,000","es":""},"value":2000000,"unit":"EUR"}],"result":150000,"unit":"EUR"}],"rationale":{"fr":"","en":"simplicity is not a criterion for choosing the unit (IFRS 13, para. 14).","es":""},"references":["REF.IFRS13.14"]}},{"prompt":{"fr":"","en":"What does the professional answer the director?","es":""},"explanation":{"fr":"","en":"Professional judgment: base the choice of unit on the item's standard.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The unit follows from the item's standard; here the park, so €2,150,000","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Simplicity justifies measuring turbine by turbine","es":""},"correct":false,"feedback":{"fr":"","en":"Simplicity is not a criterion; the unit is set by the item's standard (IFRS 13, para. 14).","es":""}},{"id":"C","text":{"fr":"","en":"IFRS 13 requires turbine-by-turbine measurement","es":""},"correct":false,"feedback":{"fr":"","en":"Subject to its own provisions, IFRS 13 does not set the unit of account: the item's standard does (IFRS 13, para. 14).","es":""}}],"id":"P3","dimension":"PROFESSIONAL_JUDGMENT"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000027","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.MARKET.PRINCIPAL_MARKET"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"PRINCIPAL_MARKET_DEF","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IFRS13.000004","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000004","section_id":"rule-markets"},"references":["IFRS 13 §16","IFRS 13"],"exercise":{"prompt":{"fr":"","en":"What is the principal market of an asset?","es":""},"explanation":{"fr":"","en":"The principal market is the one with the highest volume and level of activity (IFRS 13, Appendix A).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The one offering the highest price","es":""},"correct":false,"feedback":{"fr":"","en":"The best price characterises, at most, the most advantageous market; the principal market is defined by volume and activity (IFRS 13, para. 16 and Appendix A).","es":""}},{"id":"B","text":{"fr":"","en":"The one where the entity bought the asset","es":""},"correct":false,"feedback":{"fr":"","en":"The place of purchase does not define the principal market; volume and activity are what matter (IFRS 13, Appendix A).","es":""}},{"id":"C","text":{"fr":"","en":"The one with the highest volume and level of activity","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000028","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.MARKET.PRINCIPAL_MARKET"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"NO_EXHAUSTIVE_SEARCH","difficulty":"BEGINNER","estimated_time_s":30,"lesson_id":"LS.IFRS13.000004","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000004","section_id":"rule-markets"},"references":["IFRS 13 §17"],"exercise":{"prompt":{"fr":"","en":"The entity must search exhaustively all possible markets before identifying the principal market.","es":""},"explanation":{"fr":"","en":"An exhaustive search of all markets is not required (IFRS 13, para. 17). Rule to remember: rely on reasonably available information, without exhaustiveness.","es":""},"common_error":{"fr":"","en":"Confusing reasonable diligence with an exhaustive search.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000029","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.MARKET.PRINCIPAL_MARKET"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"AGRI","tested_point":"PRINCIPAL_VS_BETTER_PRICE","difficulty":"INTERMEDIATE","estimated_time_s":45,"lesson_id":"LS.IFRS13.000004","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000004","section_id":"rule-markets"},"references":["IFRS 13 §18","IFRS 13 §19"],"exercise":{"prompt":{"fr":"","en":"Valdorne Cooperative (fictitious) sells its wheat in the regional market (highest volume, accessible). The port market pays 4% more before costs (case data). Which market is used for the measurement?","es":""},"explanation":{"fr":"","en":"The principal market applies even if another market pays more (IFRS 13).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The port market, because it pays more","es":""},"correct":false,"feedback":{"fr":"","en":"The principal market prevails even if another market offers a better price (IFRS 13).","es":""}},{"id":"B","text":{"fr":"","en":"An average price of the two markets","es":""},"correct":false,"feedback":{"fr":"","en":"The standard ties the measurement to the principal market, with no averaging of markets (IFRS 13).","es":""}},{"id":"C","text":{"fr":"","en":"The regional market, the principal market","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000030","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.MARKET.PRINCIPAL_MARKET"],"dimension":"RECOGNITION","format":"MULTIPLE_CHOICE","context":"FINANCE","tested_point":"MARKET_ACCESS","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS13.000004","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000004","section_id":"rule-markets"},"references":["IFRS 13 §19"],"exercise":{"prompt":{"fr":"","en":"Which statements about market access are correct? (more than one)","es":""},"explanation":{"fr":"","en":"Access at the measurement date is required and principal markets may differ between entities (IFRS 13).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"All players in a sector have the same principal market","es":""},"correct":false,"feedback":{"fr":"","en":"Principal markets may differ from one entity to another depending on their access (IFRS 13).","es":""}},{"id":"B","text":{"fr":"","en":"A market the entity cannot access can be used if it offers the best price","es":""},"correct":false,"feedback":{"fr":"","en":"Access at the measurement date is a condition; an inaccessible market is not suitable (IFRS 13).","es":""}},{"id":"C","text":{"fr":"","en":"The entity must be able to access the market at the measurement date","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Two entities may have different principal markets","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000031","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.MARKET.MOST_ADVANTAGEOUS_MARKET"],"dimension":"CALCULATION","format":"CALCULATION","context":"METALS","tested_point":"MOST_ADVANTAGEOUS_NET","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IFRS13.000004","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000004","section_id":"numeric"},"references":["IFRS 13","IFRS 13 §16"],"exercise":{"prompt":{"fr":"","en":"Metalor has no principal market. Calculate the net amount per lot in each market and identify the most advantageous.","es":""},"explanation":{"fr":"","en":"A: 1,000 − 60 − 40 = 900; B: 1,100 − 90 − 70 = 940. B is the most advantageous (+40 per lot). Rule to remember: compare amounts net of transaction and transport costs (IFRS 13, Appendix A).","es":""},"common_error":{"fr":"","en":"Comparing gross prices (B also wins here, but the gap is wrong).","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Market A: price / transaction / transport","es":""},"value":"1000 / 60 / 40","unit":"TEXT"},{"label":{"fr":"","en":"Market B: price / transaction / transport","es":""},"value":"1100 / 90 / 70","unit":"TEXT"}],"steps":[{"id":"S1","label":{"fr":"","en":"Net amount, market A","es":""},"answer":900,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Net amount, market B","es":""},"answer":940,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Excess of the most advantageous market","es":""},"answer":40,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000032","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.MARKET.TRANSACTION_COSTS"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"COSTS_CLASSIFY","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS13.000004","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000004","section_id":"rule-costs"},"references":["IFRS 13 §25"],"exercise":{"prompt":{"fr":"","en":"Classify each cost: does it reduce the price used for fair value?","es":""},"explanation":{"fr":"","en":"Transaction costs do not adjust the price (IFRS 13, para. 25); transport costs adjust it if location is a characteristic (IFRS 13, para. 26). Rule to remember: transaction = no adjustment; transport = conditional adjustment.","es":""},"common_error":{"fr":"","en":"Reducing the price by all selling costs.","es":""},"format":"CLASSIFICATION","categories":[{"id":"NO","text":{"fr":"","en":"Does not reduce the price","es":""}},{"id":"YES","text":{"fr":"","en":"Reduces the price (if location is a characteristic)","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Brokerage commission on sale","es":""},"category":"NO"},{"id":"I2","text":{"fr":"","en":"Exchange fees paid by the seller","es":""},"category":"NO"},{"id":"I3","text":{"fr":"","en":"Freight to the principal market","es":""},"category":"YES"},{"id":"I4","text":{"fr":"","en":"Insurance for transport to the market","es":""},"category":"YES"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000033","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.MARKET.TRANSPORT_COSTS"],"dimension":"CALCULATION","format":"CALCULATION","context":"METALS","tested_point":"FV_PRINCIPAL_TRANSPORT","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IFRS13.000004","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000004","section_id":"numeric"},"references":["IFRS 13 §26"],"exercise":{"prompt":{"fr":"","en":"Market A is Metalor's principal market (200 lots); location is a characteristic. Calculate the fair value per lot and in total.","es":""},"explanation":{"fr":"","en":"1,000 − 40 = 960 per lot; 960 × 200 = 192,000. The 60 of transaction costs are not deducted. Rule to remember: principal market price − transport costs, without transaction costs (IFRS 13, paras. 25 and 26).","es":""},"common_error":{"fr":"","en":"Also deducting the 60 transaction costs (900 × 200 = 180,000).","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Price per lot (market A)","es":""},"value":"1000","unit":"EUR"},{"label":{"fr":"","en":"Transaction costs per lot","es":""},"value":"60","unit":"EUR"},{"label":{"fr":"","en":"Transport costs per lot","es":""},"value":"40","unit":"EUR"},{"label":{"fr":"","en":"Number of lots","es":""},"value":"200","unit":"UNITS"}],"steps":[{"id":"S1","label":{"fr":"","en":"Fair value per lot","es":""},"answer":960,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Total fair value","es":""},"answer":192000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Fair value per lot","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Price per lot (market A)","es":""},"value":1000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Transport costs per lot","es":""},"value":40,"unit":"EUR"}],"result":960,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"Total fair value","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value per lot","es":""},"value":960,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Number of lots","es":""},"value":200,"unit":"UNITS"}],"result":192000,"unit":"EUR"}],"rationale":{"fr":"","en":"principal market price − transport costs, without transaction costs (IFRS 13, paras. 25 and 26).","es":""},"references":["REF.IFRS13.26"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000034","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.MARKET.TRANSPORT_COSTS"],"dimension":"CALCULATION","format":"CALCULATION","context":"METALS","tested_point":"FV_NO_PRINCIPAL_B","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IFRS13.000004","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000004","section_id":"numeric"},"references":["IFRS 13 §26","IFRS 13 §16"],"exercise":{"prompt":{"fr":"","en":"Teaching assumption: Metalor has no principal market. Calculate the fair value of the 200 lots (market B is the most advantageous; location is a characteristic).","es":""},"explanation":{"fr":"","en":"Market B is used for lack of a principal market. 1,100 − 70 = 1,030; 1,030 × 200 = 206,000. Rule to remember: even in the most advantageous market, only transport costs adjust the price (IFRS 13, paras. 16, 25 and 26).","es":""},"common_error":{"fr":"","en":"Using the net amount of 940 as fair value.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Price per lot (market B)","es":""},"value":"1100","unit":"EUR"},{"label":{"fr":"","en":"Transaction costs per lot","es":""},"value":"90","unit":"EUR"},{"label":{"fr":"","en":"Transport costs per lot","es":""},"value":"70","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Fair value per lot","es":""},"answer":1030,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Total fair value (200 lots)","es":""},"answer":206000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Fair value per lot","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Price per lot (market B)","es":""},"value":1100,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Transport costs per lot","es":""},"value":70,"unit":"EUR"}],"result":1030,"unit":"EUR"}],"rationale":{"fr":"","en":"even in the most advantageous market, only transport costs adjust the price (IFRS 13, paras. 16, 25 and 26).","es":""},"references":["REF.IFRS13.26","REF.IFRS13.16"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000035","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.MARKET.TRANSACTION_COSTS"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"GENERIC","tested_point":"MARKET_ERRORS","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IFRS13.000004","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000004","section_id":"pitfalls"},"references":["IFRS 13","IFRS 13 §25","IFRS 13 §26"],"exercise":{"prompt":{"fr":"","en":"Spot the errors in the measurement of a lot of commodities.","es":""},"explanation":{"fr":"","en":"Rule to remember: net amounts to choose, market price adjusted only for transport to measure (IFRS 13, paras. 25, 26 and Appendix A).","es":""},"common_error":{"fr":"","en":"Confusing the criterion for choosing the market with the fair value measure.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"The most advantageous market is determined by comparing amounts net of transaction and transport costs.","es":""},"erroneous":false},{"id":"S2","text":{"fr":"","en":"The fair value used is the net amount of the most advantageous market.","es":""},"erroneous":true,"correction":{"fr":"","en":"The net amount serves to choose the market; fair value is that market's price, adjusted only for transport costs if location is a characteristic (IFRS 13, paras. 25 and 26).","es":""}},{"id":"S3","text":{"fr":"","en":"Transport costs are a category of transaction costs.","es":""},"erroneous":true,"correction":{"fr":"","en":"Transaction costs do not include transport costs (IFRS 13, para. 26).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000036","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.MARKET.PRINCIPAL_MARKET"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"METALS","tested_point":"MARKET_MINI_CASE","difficulty":"EXPERT","estimated_time_s":240,"lesson_id":"LS.IFRS13.000004","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000004","section_id":"judgment"},"references":["IFRS 13 §16","IFRS 13 §17","IFRS 13 §18","IFRS 13 §19"],"exercise":{"prompt":{"fr":"","en":"Analyse the market choice of the fictitious company Aciérie Norvane.","es":""},"explanation":{"fr":"","en":"Rule to remember: accessible principal market, price adjusted for transport, without transaction costs (IFRS 13, paras. 25 and 26).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Aciérie Norvane (fictitious) must measure 500 tonnes of billets. Case data: it usually sells in the European market (highest activity volume, accessible), at €600 per tonne; the Asian market would offer €640 but its access rules require a licence Norvane does not hold at the measurement date. Transport costs to the European market: €20 per tonne; location is a characteristic of the asset. Transaction costs: €12 per tonne.","es":""},"exhibits":[],"parts":[{"prompt":{"fr":"","en":"Which market is used for the measurement?","es":""},"explanation":{"fr":"","en":"The market must be accessible at the measurement date and the principal market prevails (IFRS 13).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The European market, the accessible principal market","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The Asian market, because its price is higher","es":""},"correct":false,"feedback":{"fr":"","en":"That market is not accessible at the measurement date and a principal market exists (IFRS 13).","es":""}},{"id":"C","text":{"fr":"","en":"A fictitious market averaging the two","es":""},"correct":false,"feedback":{"fr":"","en":"The measurement is tied to a real, accessible market, not to an average (IFRS 13).","es":""}}],"id":"P1","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"Calculate the fair value of the 500 tonnes.","es":""},"explanation":{"fr":"","en":"600 − 20 = 580 per tonne; 580 × 500 = 290,000. The 12 of transaction costs are not deducted. Rule to remember: transport adjusts, transaction does not (IFRS 13, paras. 25 and 26).","es":""},"common_error":{"fr":"","en":"Also deducting transaction costs: only transport costs adjust the price, not transaction costs.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"European price per tonne","es":""},"value":"600","unit":"EUR"},{"label":{"fr":"","en":"Transport per tonne","es":""},"value":"20","unit":"EUR"},{"label":{"fr":"","en":"Transaction per tonne","es":""},"value":"12","unit":"EUR"},{"label":{"fr":"","en":"Tonnes","es":""},"value":"500","unit":"UNITS"}],"steps":[{"id":"S1","label":{"fr":"","en":"Fair value per tonne","es":""},"answer":580,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Total fair value","es":""},"answer":290000,"tolerance":0,"unit":"EUR"}],"id":"P2","dimension":"CALCULATION","formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Fair value per tonne","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"European price per tonne","es":""},"value":600,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Transport per tonne","es":""},"value":20,"unit":"EUR"}],"result":580,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"Total fair value","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value per tonne","es":""},"value":580,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Tonnes","es":""},"value":500,"unit":"UNITS"}],"result":290000,"unit":"EUR"}],"rationale":{"fr":"","en":"transport adjusts, transaction does not (IFRS 13, paras. 25 and 26).","es":""},"references":["REF.IFRS13.16","REF.IFRS13.17","REF.IFRS13.18","REF.IFRS13.19"]}},{"prompt":{"fr":"","en":"What should the file keep? (more than one)","es":""},"explanation":{"fr":"","en":"Professional judgment: document activity and access, without requiring exhaustiveness (IFRS 13, para. 17).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Activity volume indications for the European market","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The lack of a licence that makes the Asian market inaccessible","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A demonstration that no other market exists in the world","es":""},"correct":false,"feedback":{"fr":"","en":"An exhaustive search of all markets is not required (IFRS 13, para. 17).","es":""}}],"id":"P3","dimension":"PROFESSIONAL_JUDGMENT"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000037","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.MARKET.TRANSACTION_COSTS"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"RETAIL","tested_point":"TRANSACTION_COSTS_FILL","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IFRS13.000004","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000004","section_id":"rule-costs"},"references":["IFRS 13 §25"],"exercise":{"prompt":{"fr":"","en":"Complete the sentence.","es":""},"explanation":{"fr":"","en":"Rule to remember: the market price is not adjusted for transaction costs; they fall under the applicable standard (IFRS 13, para. 25).","es":""},"common_error":{"fr":"","en":"Deducting transaction costs from the market price: they are dealt with under the item's standard, not in fair value.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"The market price is {{ajuste}} adjusted for transaction costs; these costs fall under the {{norme}} applicable to the item.","es":""},"blanks":[{"id":"ajuste","mode":"CHOICE","choices":[{"id":"NOT","text":{"fr":"","en":"is not","es":""}},{"id":"IS","text":{"fr":"","en":"is","es":""}}],"answer":"NOT"},{"id":"norme","mode":"CHOICE","choices":[{"id":"STD","text":{"fr":"","en":"standard","es":""}},{"id":"MKT","text":{"fr":"","en":"market practice","es":""}}],"answer":"STD"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000038","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.MARKET.MOST_ADVANTAGEOUS_MARKET"],"dimension":"APPLICATION","format":"ORDERING","context":"TRANSPORT","tested_point":"MOST_ADV_FILL_ORDER","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS13.000004","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000004","section_id":"how"},"references":["IFRS 13","IFRS 13 §16"],"exercise":{"prompt":{"fr":"","en":"Put in order the (teaching) approach for measurement without a principal market.","es":""},"explanation":{"fr":"","en":"Approach: the net amount serves to choose; the price used is adjusted only for transport (IFRS 13, paras. 16, 25, 26 and Appendix A). Rule to remember: this order is a teaching approach, not imposed.","es":""},"common_error":{"fr":"","en":"Using the amount net of transaction costs as fair value: that net amount only serves to choose the market.","es":""},"format":"ORDERING","steps":[{"id":"S1","text":{"fr":"","en":"List the markets accessible at the measurement date","es":""}},{"id":"S2","text":{"fr":"","en":"Compute for each the amount net of transaction and transport costs","es":""}},{"id":"S3","text":{"fr":"","en":"Use the market with the highest net amount","es":""}},{"id":"S4","text":{"fr":"","en":"Take that market's price, without transaction costs","es":""}},{"id":"S5","text":{"fr":"","en":"Deduct transport costs if location is a characteristic","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000039","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.NONFIN.HIGHEST_AND_BEST_USE"],"dimension":"RULE_KNOWLEDGE","format":"MULTIPLE_CHOICE","context":"GENERIC","tested_point":"HBU_THREE_CRITERIA","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IFRS13.000005","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000005","section_id":"rule-hbu"},"references":["IFRS 13 §28"],"exercise":{"prompt":{"fr":"","en":"Which criteria must a use meet to be retained as highest and best use? (more than one)","es":""},"explanation":{"fr":"","en":"The three criteria are: physically possible, legally permissible, financially feasible (IFRS 13, para. 28).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Already implemented by the entity","es":""},"correct":false,"feedback":{"fr":"","en":"The entity's current use is not a criterion in itself: it is only presumed to be the highest and best use, unless the market or other factors indicate otherwise (IFRS 13, para. 29).","es":""}},{"id":"B","text":{"fr":"","en":"Physically possible","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Legally permissible","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Financially feasible","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000040","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.NONFIN.HIGHEST_AND_BEST_USE"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"FINANCE","tested_point":"HBU_NONFINANCIAL_ONLY","difficulty":"BEGINNER","estimated_time_s":30,"lesson_id":"LS.IFRS13.000005","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000005","section_id":"rule-hbu"},"references":["IFRS 13 §29"],"exercise":{"prompt":{"fr":"","en":"The highest and best use notion also applies to financial assets.","es":""},"explanation":{"fr":"","en":"It only makes sense for non-financial assets (IFRS 13, para. 29). Rule to remember: highest and best use = non-financial assets.","es":""},"common_error":{"fr":"","en":"Extending the notion to financial instruments.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000041","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.NONFIN.HIGHEST_AND_BEST_USE"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"REAL_ESTATE","tested_point":"HBU_CLASSIFY_USES","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS13.000005","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000005","section_id":"numeric"},"references":["IFRS 13 §28","IFRS 13 §29"],"exercise":{"prompt":{"fr":"","en":"Classify each use of a plot: discarded or to be compared.","es":""},"explanation":{"fr":"","en":"Only uses that pass the three criteria are compared (IFRS 13, para. 28). Rule to remember: a prohibited or unfeasible use is discarded, even if more highly valued.","es":""},"common_error":{"fr":"","en":"Retaining a prohibited use because it is worth more.","es":""},"format":"CLASSIFICATION","categories":[{"id":"OUT","text":{"fr":"","en":"Discarded (criterion not met)","es":""}},{"id":"COMPARE","text":{"fr":"","en":"To be compared","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Office building prohibited by zoning","es":""},"category":"OUT"},{"id":"I2","text":{"fr":"","en":"Warehouse on ground unfit for construction","es":""},"category":"OUT"},{"id":"I3","text":{"fr":"","en":"Housing development allowed, technically possible and profitable","es":""},"category":"COMPARE"},{"id":"I4","text":{"fr":"","en":"Current car park use, allowed and feasible","es":""},"category":"COMPARE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000042","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.NONFIN.HIGHEST_AND_BEST_USE"],"dimension":"CALCULATION","format":"CALCULATION","context":"REAL_ESTATE","tested_point":"HBU_CALC","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IFRS13.000005","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000005","section_id":"numeric"},"references":["IFRS 13 §28","IFRS 13 §29"],"exercise":{"prompt":{"fr":"","en":"Domaine Sarvane: zoning prohibits the tower. Calculate the net value of the housing scenario and determine the plot's fair value.","es":""},"explanation":{"fr":"","en":"6,500,000 − 3,900,000 = 2,600,000, higher than 2,000,000; the tower (3,100,000) is discarded, not permitted. Rule to remember: use the highest value among uses passing the three criteria (IFRS 13, para. 28).","es":""},"common_error":{"fr":"","en":"Using 3,100,000 (prohibited use) or 6,500,000 (without conversion costs).","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Car park, current value","es":""},"value":"2000000","unit":"EUR"},{"label":{"fr":"","en":"Housing, value after conversion","es":""},"value":"6500000","unit":"EUR"},{"label":{"fr":"","en":"Conversion costs","es":""},"value":"3900000","unit":"EUR"},{"label":{"fr":"","en":"Office tower (not permitted)","es":""},"value":"3100000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Net value of housing","es":""},"answer":2600000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Fair value used","es":""},"answer":2600000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Net value of housing","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Housing, value after conversion","es":""},"value":6500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Conversion costs","es":""},"value":3900000,"unit":"EUR"}],"result":2600000,"unit":"EUR"}],"rationale":{"fr":"","en":"use the highest value among uses passing the three criteria (IFRS 13, para. 28).","es":""},"references":["REF.IFRS13.28"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000043","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.NONFIN.HIGHEST_AND_BEST_USE"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"CONSUMER","tested_point":"DEFENSIVE_USE","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IFRS13.000005","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000005","section_id":"judgment"},"references":["IFRS 13 §30"],"exercise":{"prompt":{"fr":"","en":"Cosmétis (fictitious) bought a brand so that a competitor cannot exploit it, and does not use it itself. How is the brand measured?","es":""},"explanation":{"fr":"","en":"Defensive use does not displace the participants' highest and best use (IFRS 13).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"At zero, since the entity does not exploit it","es":""},"correct":false,"feedback":{"fr":"","en":"The entity's defensive use does not drive the measurement; it remains based on participants' highest and best use (IFRS 13).","es":""}},{"id":"B","text":{"fr":"","en":"Based on the highest and best use by market participants","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"At the purchase cost, for prudence","es":""},"correct":false,"feedback":{"fr":"","en":"The purchase cost is an entry price; the measurement is an exit price based on participants (IFRS 13).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000044","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.NONFIN.VALUATION_PREMISE"],"dimension":"RULE_KNOWLEDGE","format":"MATCHING","context":"INDUSTRIAL","tested_point":"PREMISE_MATCH","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS13.000005","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000005","section_id":"rule-premise"},"references":["IFRS 13 §31","IFRS 13 §32","IFRS 13 §33"],"exercise":{"prompt":{"fr":"","en":"Match each valuation premise with its price.","es":""},"explanation":{"fr":"","en":"Rule to remember: combined = value within the group; stand-alone = sale on its own (IFRS 13).","es":""},"common_error":{"fr":"","en":"Swapping the premises: combined use is the value within the asset group; stand-alone is a sale on its own.","es":""},"format":"MATCHING","left":[{"id":"L1","text":{"fr":"","en":"Combined use","es":""}},{"id":"L2","text":{"fr":"","en":"Stand-alone use","es":""}}],"right":[{"id":"R3","text":{"fr":"","en":"Historical acquisition cost","es":""}},{"id":"R2","text":{"fr":"","en":"Sale to a participant who would use it on its own","es":""}},{"id":"R1","text":{"fr":"","en":"Value the asset contributes to the group of assets","es":""}}],"pairs":[{"left":"L1","right":"R1"},{"left":"L2","right":"R2"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000045","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.NONFIN.VALUATION_PREMISE"],"dimension":"CALCULATION","format":"CALCULATION","context":"INDUSTRIAL","tested_point":"PREMISE_CALC","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IFRS13.000005","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000005","section_id":"rule-premise"},"references":["IFRS 13 §31","IFRS 13 §32","IFRS 13 §33"],"exercise":{"prompt":{"fr":"","en":"Teaching assumption: market participants would use the machine in a complete production line. Calculate the fair value and the difference with a stand-alone sale.","es":""},"explanation":{"fr":"","en":"Participants would use the machine in combination: 840,000; 840,000 − 300,000 = 540,000. Rule to remember: the premise follows participants' highest and best use (IFRS 13).","es":""},"common_error":{"fr":"","en":"Using the stand-alone value for prudence.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Value in combined use (case data)","es":""},"value":"840000","unit":"EUR"},{"label":{"fr":"","en":"Value in stand-alone use (case data)","es":""},"value":"300000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Fair value used","es":""},"answer":840000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Difference with stand-alone value","es":""},"answer":540000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S2","meaning":{"fr":"","en":"Difference with stand-alone value","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Value in combined use (case data)","es":""},"value":840000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Value in stand-alone use (case data)","es":""},"value":300000,"unit":"EUR"}],"result":540000,"unit":"EUR"}],"rationale":{"fr":"","en":"the premise follows participants' highest and best use (IFRS 13).","es":""},"references":["REF.IFRS13.31","REF.IFRS13.32","REF.IFRS13.33"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000046","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.NONFIN.HIGHEST_AND_BEST_USE"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"REAL_ESTATE","tested_point":"HBU_ERRORS","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IFRS13.000005","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000005","section_id":"pitfalls"},"references":["IFRS 13 §28","IFRS 13 §29"],"exercise":{"prompt":{"fr":"","en":"Spot the errors in a plot valuation file.","es":""},"explanation":{"fr":"","en":"Rule to remember: three criteria and the market participants' point of view (IFRS 13, paras. 28 and 29).","es":""},"common_error":{"fr":"","en":"Setting aside legal criteria in favour of the highest value.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"The highest of the values net of conversion costs is used.","es":""},"erroneous":false},{"id":"S2","text":{"fr":"","en":"The office tower is retained although zoning prohibits it, because it is worth more.","es":""},"erroneous":true,"correction":{"fr":"","en":"A use must be legally permissible to be retained (IFRS 13, para. 28).","es":""}},{"id":"S3","text":{"fr":"","en":"The use planned by management determines the highest and best use.","es":""},"erroneous":true,"correction":{"fr":"","en":"Highest and best use is determined from market participants' point of view (IFRS 13, para. 29).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000047","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.NONFIN.HIGHEST_AND_BEST_USE"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"REAL_ESTATE","tested_point":"HBU_MINI_CASE","difficulty":"EXPERT","estimated_time_s":240,"lesson_id":"LS.IFRS13.000005","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000005","section_id":"judgment"},"references":["IFRS 13 §28","IFRS 13 §29","IFRS 13 §31"],"exercise":{"prompt":{"fr":"","en":"Analyse the file of the fictitious company Foncière Alvane.","es":""},"explanation":{"fr":"","en":"Rule to remember: highest and best use = highest value, net of costs, among possible, permitted and feasible uses (IFRS 13, paras. 28 and 29).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Foncière Alvane (fictitious) owns a plot leased as a car park with a current value of €1,800,000 (case data). A developer would build offices there: value after construction €5,200,000, conversion costs (developer included) €3,600,000. The local planning scheme allows offices. Management says it will keep the car park forever.","es":""},"exhibits":[],"parts":[{"prompt":{"fr":"","en":"Calculate the net value of the office scenario.","es":""},"explanation":{"fr":"","en":"5,200,000 − 3,600,000 = 1,600,000. Rule to remember: compare the value net of conversion costs with the current use value (IFRS 13, para. 28).","es":""},"common_error":{"fr":"","en":"Comparing the gross post-construction value with the current use without deducting conversion costs.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Value after construction","es":""},"value":"5200000","unit":"EUR"},{"label":{"fr":"","en":"Conversion costs","es":""},"value":"3600000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Net office value","es":""},"answer":1600000,"tolerance":0,"unit":"EUR"}],"id":"P1","dimension":"CALCULATION","formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Net office value","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Value after construction","es":""},"value":5200000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Conversion costs","es":""},"value":3600000,"unit":"EUR"}],"result":1600000,"unit":"EUR"}],"rationale":{"fr":"","en":"compare the value net of conversion costs with the current use value (IFRS 13, para. 28).","es":""},"references":["REF.IFRS13.28"]}},{"prompt":{"fr":"","en":"What is the plot's fair value?","es":""},"explanation":{"fr":"","en":"The car park is the highest and best use because it is worth more than offices net of costs; the comparison, not the intention, decides (IFRS 13, paras. 28 and 29).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"€1,800,000, because the car park is worth more than offices net of costs","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"€5,200,000, the value of the built offices","es":""},"correct":false,"feedback":{"fr":"","en":"This value ignores conversion costs; the comparison is made net of these costs (IFRS 13, para. 28).","es":""}},{"id":"C","text":{"fr":"","en":"€1,600,000, net value of offices","es":""},"correct":false,"feedback":{"fr":"","en":"The net value of offices (1,600,000) is below the current use (1,800,000): the highest and best use is therefore the car park (IFRS 13, para. 28).","es":""}}],"id":"P2","dimension":"ANALYSIS"},{"prompt":{"fr":"","en":"Management's statement 'we are keeping the car park forever' alone justifies using €1,800,000.","es":""},"explanation":{"fr":"","en":"Professional judgment: the conclusion rests on the comparison of values from the participants' point of view, not on the entity's intention (IFRS 13, para. 29). Rule to remember: intention does not justify the result.","es":""},"common_error":{"fr":"","en":"Basing the conclusion on management's intent: only the comparison of values from participants' viewpoint counts.","es":""},"format":"TRUE_FALSE","answer":false,"id":"P3","dimension":"PROFESSIONAL_JUDGMENT"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000048","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.NONFIN.VALUATION_PREMISE"],"dimension":"RECOGNITION","format":"FILL_BLANK","context":"INDUSTRIAL","tested_point":"PREMISE_FILL","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IFRS13.000005","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000005","section_id":"rule-premise"},"references":["IFRS 13 §31","IFRS 13 §33"],"exercise":{"prompt":{"fr":"","en":"Complete the sentence.","es":""},"explanation":{"fr":"","en":"Rule to remember: stand-alone use corresponds to a sale to a participant who would use the asset on its own (IFRS 13).","es":""},"common_error":{"fr":"","en":"Confusing stand-alone and combined use: stand-alone assumes a sale to a participant who would use the asset alone.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Under the {{type}} use premise, the price is that of a sale to a participant who would use the asset {{seul}}.","es":""},"blanks":[{"id":"type","mode":"CHOICE","choices":[{"id":"ISO","text":{"fr":"","en":"stand-alone","es":""}},{"id":"COMB","text":{"fr":"","en":"combined","es":""}}],"answer":"ISO"},{"id":"seul","mode":"CHOICE","choices":[{"id":"ALONE","text":{"fr":"","en":"on its own, without complementary assets","es":""}},{"id":"GROUP","text":{"fr":"","en":"with the whole group","es":""}}],"answer":"ALONE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000049","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.LIABILITY.TRANSFER_ASSUMPTION"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"BANKING","tested_point":"TRANSFER_NOT_SETTLEMENT","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IFRS13.000006","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000006","section_id":"rule-transfer"},"references":["IFRS 13 §34"],"exercise":{"prompt":{"fr":"","en":"Which assumption underlies the fair value measurement of a liability?","es":""},"explanation":{"fr":"","en":"The assumption is a transfer to a market participant, liability maintained (IFRS 13).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is repaid immediately to the creditor","es":""},"correct":false,"feedback":{"fr":"","en":"The liability is not assumed extinguished by settlement with the counterparty (IFRS 13).","es":""}},{"id":"B","text":{"fr":"","en":"It is cancelled by agreement with the creditor","es":""},"correct":false,"feedback":{"fr":"","en":"Cancellation with the creditor is a settlement; the assumption is a transfer to a third party (IFRS 13).","es":""}},{"id":"C","text":{"fr":"","en":"It is transferred to a market participant and remains outstanding","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000050","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.LIABILITY.TRANSFER_ASSUMPTION"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"ENERGY","tested_point":"TRANSFER_NO_MARKET","difficulty":"BEGINNER","estimated_time_s":30,"lesson_id":"LS.IFRS13.000006","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000006","section_id":"rule-transfer"},"references":["IFRS 13 §35"],"exercise":{"prompt":{"fr":"","en":"Without an observable transfer market, the transfer assumption no longer applies.","es":""},"explanation":{"fr":"","en":"The assumption holds even without an observable transfer market (IFRS 13, para. 35). Rule to remember: reasoning then starts from what a participant holding the item as an asset would accept.","es":""},"common_error":{"fr":"","en":"Abandoning the assumption for lack of a market.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000051","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.LIABILITY.HELD_BY_OTHER_PARTY_AS_ASSET"],"dimension":"APPLICATION","format":"ORDERING","context":"FINANCE","tested_point":"LIAB_APPROACH_ORDER","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS13.000006","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000006","section_id":"rule-pricing"},"references":["IFRS 13 §37","IFRS 13 §38","IFRS 13 §39","IFRS 13 §40"],"exercise":{"prompt":{"fr":"","en":"Put in order the approaches set by the standard to measure a liability, from the most direct to the least direct.","es":""},"explanation":{"fr":"","en":"Approach: without a quoted transfer price, the point of view of the party holding the item as an asset is used (IFRS 13, para. 37); if nobody holds it as an asset, a technique from the obligor's point of view is used (IFRS 13, para. 40). Rule to remember: this order comes from the standard and follows the availability of information.","es":""},"common_error":{"fr":"","en":"Going straight to a technique from the obligor's viewpoint when a quoted price or an asset holder exists.","es":""},"format":"ORDERING","steps":[{"id":"S1","text":{"fr":"","en":"Quoted price for the transfer of an identical or similar liability","es":""}},{"id":"S2","text":{"fr":"","en":"Asset-holder's point of view, adjusting for characteristics specific to the asset","es":""}},{"id":"S3","text":{"fr":"","en":"Valuation technique from the point of view of the participant assuming the obligation","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000052","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.LIABILITY.HELD_BY_OTHER_PARTY_AS_ASSET"],"dimension":"CALCULATION","format":"CALCULATION","context":"BANKING","tested_point":"HELD_AS_ASSET_ADJUST","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IFRS13.000006","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000006","section_id":"rule-pricing"},"references":["IFRS 13 §39"],"exercise":{"prompt":{"fr":"","en":"Teaching assumption: Banque Ostrane's (fictitious) bond is held as an asset by investors, quoted at 97 per 100 nominal, of which 2 reflects a third-party credit enhancement that does not apply to the liability. 10,000 securities. Calculate the fair value of the liability.","es":""},"explanation":{"fr":"","en":"97 − 2 = 95 per security; 95 × 10,000 = 950,000. Rule to remember: adjust the holder's price for asset characteristics that do not apply to the liability (IFRS 13).","es":""},"common_error":{"fr":"","en":"Using 97 × 10,000 without adjustment.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Holder's quote per security","es":""},"value":"97","unit":"EUR"},{"label":{"fr":"","en":"Portion due to the credit enhancement","es":""},"value":"2","unit":"EUR"},{"label":{"fr":"","en":"Securities","es":""},"value":"10000","unit":"UNITS"}],"steps":[{"id":"S1","label":{"fr":"","en":"Adjusted price per security","es":""},"answer":95,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Fair value of the liability","es":""},"answer":950000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Adjusted price per security","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Holder's quote per security","es":""},"value":97,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Portion due to the credit enhancement","es":""},"value":2,"unit":"EUR"}],"result":95,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"Fair value of the liability","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Adjusted price per security","es":""},"value":95,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Securities","es":""},"value":10000,"unit":"UNITS"}],"result":950000,"unit":"EUR"}],"rationale":{"fr":"","en":"adjust the holder's price for asset characteristics that do not apply to the liability (IFRS 13).","es":""},"references":["REF.IFRS13.39"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000053","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.LIABILITY.NOT_HELD_BY_OTHER_PARTY_AS_ASSET"],"dimension":"CALCULATION","format":"CALCULATION","context":"ENERGY","tested_point":"PV_WITH_MARGIN","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IFRS13.000006","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000006","section_id":"numeric"},"references":["IFRS 13 §40","IFRS 13 §41"],"exercise":{"prompt":{"fr":"","en":"Teaching assumption: no quoted price, no asset-holder. A participant would bear €1,000,000 in 2 years and require a 10% margin; rate 5%. Calculate the fair value of the obligation (rounded to the euro).","es":""},"explanation":{"fr":"","en":"1,000,000 × 1.10 = 1,100,000; 1,100,000 / 1.05² = 997,732. Rule to remember: present value of the flows a participant would bear, increased by a risk-compensation margin (IFRS 13).","es":""},"common_error":{"fr":"","en":"Discounting without margin (907,029).","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Expected outflow (year 2)","es":""},"value":"1000000","unit":"EUR"},{"label":{"fr":"","en":"Compensation margin","es":""},"value":"10","unit":"PERCENT"},{"label":{"fr":"","en":"Discount rate","es":""},"value":"5","unit":"PERCENT"}],"steps":[{"id":"S1","label":{"fr":"","en":"Flow with margin","es":""},"answer":1100000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Fair value","es":""},"answer":997732,"tolerance":1,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Flow with margin","es":""},"expression":"a * (1 + b)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Expected outflow (year 2)","es":""},"value":1000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Compensation margin","es":""},"value":10,"unit":"PERCENT"}],"result":1100000,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"Fair value","es":""},"expression":"a / (1 + b)^2","variables":[{"symbol":"a","meaning":{"fr":"","en":"Flow with margin","es":""},"value":1100000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Discount rate","es":""},"value":5,"unit":"PERCENT"}],"result":997732,"unit":"EUR"}],"rationale":{"fr":"","en":"present value of the flows a participant would bear, increased by a risk-compensation margin (IFRS 13).","es":""},"references":["REF.IFRS13.40","REF.IFRS13.41"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000054","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.LIABILITY.NON_PERFORMANCE_RISK"],"dimension":"CALCULATION","format":"CALCULATION","context":"BANKING","tested_point":"CREDIT_RISK_EFFECT","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IFRS13.000006","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000006","section_id":"numeric"},"references":["IFRS 13 §42"],"exercise":{"prompt":{"fr":"","en":"Teaching assumption: debt of €1,000,000 payable in 2 years. Risk-free rate 2%; rate including own credit spread 6%. Calculate the two present values (rounded to the euro) and the effect of credit risk.","es":""},"explanation":{"fr":"","en":"1,000,000 / 1.02² = 961,169; 1,000,000 / 1.06² = 889,996; difference ≈ 71,173 (to the nearest euro). Rule to remember: own credit risk reduces the fair value of the liability (IFRS 13).","es":""},"common_error":{"fr":"","en":"Ignoring own credit spread or reversing its direction.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Amount due in 2 years","es":""},"value":"1000000","unit":"EUR"},{"label":{"fr":"","en":"Risk-free rate","es":""},"value":"2","unit":"PERCENT"},{"label":{"fr":"","en":"Rate with own credit spread","es":""},"value":"6","unit":"PERCENT"}],"steps":[{"id":"S1","label":{"fr":"","en":"Present value without credit risk","es":""},"answer":961169,"tolerance":1,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Fair value with own credit risk","es":""},"answer":889996,"tolerance":1,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Effect of credit risk","es":""},"answer":71173,"tolerance":2,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Present value without credit risk","es":""},"expression":"a / (1 + b)^2","variables":[{"symbol":"a","meaning":{"fr":"","en":"Amount due in 2 years","es":""},"value":1000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Risk-free rate","es":""},"value":2,"unit":"PERCENT"}],"result":961169,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"Fair value with own credit risk","es":""},"expression":"a / (1 + b)^2","variables":[{"symbol":"a","meaning":{"fr":"","en":"Amount due in 2 years","es":""},"value":1000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Rate with own credit spread","es":""},"value":6,"unit":"PERCENT"}],"result":889996,"unit":"EUR"}],"rationale":{"fr":"","en":"own credit risk reduces the fair value of the liability (IFRS 13).","es":""},"references":["REF.IFRS13.42"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000055","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.LIABILITY.NON_PERFORMANCE_RISK"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"BANKING","tested_point":"CREDIT_RISK_SAME","difficulty":"INTERMEDIATE","estimated_time_s":30,"lesson_id":"LS.IFRS13.000006","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000006","section_id":"rule-risk"},"references":["IFRS 13 §42"],"exercise":{"prompt":{"fr":"","en":"The non-performance risk of a liability is assumed to be the same before and after its transfer.","es":""},"explanation":{"fr":"","en":"Non-performance risk, own credit risk included, is assumed the same before and after the transfer (IFRS 13). Rule to remember: the taker is assumed to have the same credit risk as the entity.","es":""},"common_error":{"fr":"","en":"Assuming a taker with no credit risk.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000056","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.LIABILITY.TRANSFER_RESTRICTIONS"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"TELECOM","tested_point":"RESTRICTION_ERROR_SPOT","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS13.000006","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000006","section_id":"rule-risk"},"references":["IFRS 13 §45","IFRS 13 §46"],"exercise":{"prompt":{"fr":"","en":"Spot the errors on transfer restrictions of a liability.","es":""},"explanation":{"fr":"","en":"Rule to remember: a transfer restriction calls for neither a separate input nor an additional discount (IFRS 13, para. 45).","es":""},"common_error":{"fr":"","en":"Double-counting the restriction's effect.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"An 8% illiquidity discount is added because the liability cannot be transferred freely.","es":""},"erroneous":true,"correction":{"fr":"","en":"No additional discount: the restriction's effect is already included in the other inputs (IFRS 13, para. 45).","es":""}},{"id":"S2","text":{"fr":"","en":"The restriction's effect is already built into the flows and rates used.","es":""},"erroneous":false},{"id":"S3","text":{"fr":"","en":"A separate input is needed for each contractual restriction.","es":""},"erroneous":true,"correction":{"fr":"","en":"No separate input is added for a transfer restriction (IFRS 13, para. 45).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000057","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.LIABILITY.DEMAND_FEATURE"],"dimension":"CALCULATION","format":"CALCULATION","context":"BANKING","tested_point":"DEMAND_FEATURE_CALC","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IFRS13.000006","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000006","section_id":"numeric"},"references":["IFRS 13 §47"],"exercise":{"prompt":{"fr":"","en":"Teaching assumption: a €500,000 deposit payable on demand in 1 year at the earliest; rate 4%; an internal technique gives €470,000. Calculate the fair value (rounded to the euro).","es":""},"explanation":{"fr":"","en":"500,000 / 1.04 = 480,769; fair value is not less than this amount, so max(470,000; 480,769) = 480,769. Rule to remember: floor = demand amount discounted from the first date payable (IFRS 13).","es":""},"common_error":{"fr":"","en":"Using 470,000 or 500,000 without discounting.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Amount payable","es":""},"value":"500000","unit":"EUR"},{"label":{"fr":"","en":"First date payable","es":""},"value":"1","unit":"YEARS"},{"label":{"fr":"","en":"Rate","es":""},"value":"4","unit":"PERCENT"},{"label":{"fr":"","en":"Technique result","es":""},"value":"470000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Discounted amount payable","es":""},"answer":480769,"tolerance":1,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Fair value used","es":""},"answer":480769,"tolerance":1,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Discounted amount payable","es":""},"expression":"a / (1 + b)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Amount payable","es":""},"value":500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Rate","es":""},"value":4,"unit":"PERCENT"}],"result":480769,"unit":"EUR"}],"rationale":{"fr":"","en":"floor = demand amount discounted from the first date payable (IFRS 13).","es":""},"references":["REF.IFRS13.47"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000058","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.LIABILITY.NON_PERFORMANCE_RISK"],"dimension":"ANALYSIS","format":"MULTIPLE_CHOICE","context":"FINANCE","tested_point":"NONPERF_MULTI","difficulty":"ADVANCED","estimated_time_s":60,"lesson_id":"LS.IFRS13.000006","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000006","section_id":"rule-risk"},"references":["IFRS 13 §42","IFRS 13 §43"],"exercise":{"prompt":{"fr":"","en":"Which statements about non-performance risk are correct? (more than one)","es":""},"explanation":{"fr":"","en":"Own credit risk is included and assumed unchanged on transfer (IFRS 13).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is assumed the same before and after the transfer","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It is ignored because the entity will pay the liability anyway","es":""},"correct":false,"feedback":{"fr":"","en":"The measurement reflects the risk that the entity will not fulfil its obligation (IFRS 13).","es":""}},{"id":"C","text":{"fr":"","en":"A better credit standing reduces the liability's fair value","es":""},"correct":false,"feedback":{"fr":"","en":"The opposite: higher own credit risk reduces fair value, lower credit risk increases it (IFRS 13).","es":""}},{"id":"D","text":{"fr":"","en":"It includes the entity's own credit risk","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000059","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.LIABILITY.NOT_HELD_BY_OTHER_PARTY_AS_ASSET"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"CONSTRUCTION","tested_point":"LIAB_MINI_CASE","difficulty":"EXPERT","estimated_time_s":240,"lesson_id":"LS.IFRS13.000006","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000006","section_id":"judgment"},"references":["IFRS 13 §40","IFRS 13 §41","IFRS 13 §43"],"exercise":{"prompt":{"fr":"","en":"Analyse the measurement of a site restoration obligation of the fictitious company Carrières Durnal.","es":""},"explanation":{"fr":"","en":"Rule to remember: present value of the flows a participant would bear, with a risk-compensation margin (IFRS 13).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Carrières Durnal (fictitious) must restore a site in 2 years. Case data: no quoted price, no third party holds this obligation as an asset; a market contractor would bear €1,000,000 at that date and require a 10% margin; discount rate 5% (teaching assumption). Management proposes using only 1,000,000 / 1.05² since 'the margin is a profit, not a cost'.","es":""},"exhibits":[],"parts":[{"prompt":{"fr":"","en":"Which measurement approach applies?","es":""},"explanation":{"fr":"","en":"Failing a quoted price and an asset-holder, a technique from the point of view of the participant assuming the obligation is used (IFRS 13).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A technique from the point of view of the participant assuming the obligation","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The quoted price of an identical item","es":""},"correct":false,"feedback":{"fr":"","en":"No quoted price exists in the case (IFRS 13, para. 40).","es":""}},{"id":"C","text":{"fr":"","en":"An asset-holder's point of view","es":""},"correct":false,"feedback":{"fr":"","en":"No third party holds the item as an asset in the case (IFRS 13).","es":""}}],"id":"P1","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"Calculate the fair value including the margin (rounded to the euro).","es":""},"explanation":{"fr":"","en":"1,000,000 × 1.10 / 1.05² = 997,732. Rule to remember: the margin a participant requires is part of the transfer price (IFRS 13).","es":""},"common_error":{"fr":"","en":"Forgetting the participant's required margin or discounting for one year only: the marked-up flow is discounted over two years.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Expected outflow","es":""},"value":"1000000","unit":"EUR"},{"label":{"fr":"","en":"Margin","es":""},"value":"10","unit":"PERCENT"},{"label":{"fr":"","en":"Rate","es":""},"value":"5","unit":"PERCENT"}],"steps":[{"id":"S1","label":{"fr":"","en":"Fair value","es":""},"answer":997732,"tolerance":1,"unit":"EUR"}],"id":"P2","dimension":"CALCULATION","formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Fair value","es":""},"expression":"a * (1 + b) / (1 + c)^2","variables":[{"symbol":"a","meaning":{"fr":"","en":"Expected outflow","es":""},"value":1000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Margin","es":""},"value":10,"unit":"PERCENT"},{"symbol":"c","meaning":{"fr":"","en":"Rate","es":""},"value":5,"unit":"PERCENT"}],"result":997732,"unit":"EUR"}],"rationale":{"fr":"","en":"the margin a participant requires is part of the transfer price (IFRS 13).","es":""},"references":["REF.IFRS13.40","REF.IFRS13.41","REF.IFRS13.43"]}},{"prompt":{"fr":"","en":"What does the professional answer to management's proposal?","es":""},"explanation":{"fr":"","en":"Professional judgment: document the estimated margin and its consistency with the participant's point of view (IFRS 13).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A participant would require a margin to assume the obligation: it is part of fair value","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The margin is the entity's profit, so it is excluded","es":""},"correct":false,"feedback":{"fr":"","en":"The measurement is that of a market participant, who is compensated for risk in assuming the obligation (IFRS 13).","es":""}},{"id":"C","text":{"fr":"","en":"The margin applies only to financial liabilities","es":""},"correct":false,"feedback":{"fr":"","en":"The rule does not limit the compensation margin to financial liabilities (IFRS 13).","es":""}}],"id":"P3","dimension":"PROFESSIONAL_JUDGMENT"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000060","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.LIABILITY.TRANSFER_ASSUMPTION"],"dimension":"RECOGNITION","format":"FILL_BLANK","context":"GENERIC","tested_point":"TRANSFER_FILL","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IFRS13.000006","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000006","section_id":"rule-transfer"},"references":["IFRS 13 §34"],"exercise":{"prompt":{"fr":"","en":"Complete the sentence.","es":""},"explanation":{"fr":"","en":"Rule to remember: transfer to a market participant, not settlement with the creditor (IFRS 13).","es":""},"common_error":{"fr":"","en":"Measuring the liability as if settled with the creditor: fair value assumes a transfer to a participant.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"A liability is measured as if it were {{action}} to a market {{tiers}}, the liability remaining outstanding.","es":""},"blanks":[{"id":"action","mode":"CHOICE","choices":[{"id":"TRANSFER","text":{"fr":"","en":"transferred","es":""}},{"id":"SETTLE","text":{"fr":"","en":"settled","es":""}}],"answer":"TRANSFER"},{"id":"tiers","mode":"CHOICE","choices":[{"id":"PART","text":{"fr":"","en":"participant","es":""}},{"id":"CRED","text":{"fr":"","en":"original creditor","es":""}}],"answer":"PART"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000061","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.PORTFOLIO.NET_EXPOSURE_EXCEPTION"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"FINANCE","tested_point":"EXCEPTION_PURPOSE","difficulty":"BEGINNER","estimated_time_s":30,"lesson_id":"LS.IFRS13.000007","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000007","section_id":"understand"},"references":["IFRS 13 §48"],"exercise":{"prompt":{"fr":"","en":"A group of financial assets and liabilities managed on a net basis may be measured on the basis of the price of a net position.","es":""},"explanation":{"fr":"","en":"Rule to remember: this is the purpose of the portfolio exception (IFRS 13, para. 48).","es":""},"common_error":{"fr":"","en":"Believing one must always measure contract by contract.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000062","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.PORTFOLIO.NET_EXPOSURE_EXCEPTION"],"dimension":"RECOGNITION","format":"MULTIPLE_CHOICE","context":"FINANCE","tested_point":"EXCEPTION_CONDITIONS","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS13.000007","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000007","section_id":"rule"},"references":["IFRS 13 §49"],"exercise":{"prompt":{"fr":"","en":"Which are conditions of the portfolio exception? (more than one)","es":""},"explanation":{"fr":"","en":"The three conditions are documented net management, net reporting, fair value of each item (IFRS 13, para. 49).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"That the group be presented net on the balance sheet","es":""},"correct":false,"feedback":{"fr":"","en":"Presentation is not changed by the exception and is not a condition of it (IFRS 13).","es":""}},{"id":"B","text":{"fr":"","en":"Documented management of the group on a net exposure basis","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Reporting to management on that net basis","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Measurement at fair value of each item at the reporting date","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000063","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.PORTFOLIO.NET_EXPOSURE_EXCEPTION"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"FINANCE","tested_point":"EXCEPTION_POLICY_CHOICE","difficulty":"INTERMEDIATE","estimated_time_s":45,"lesson_id":"LS.IFRS13.000007","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000007","section_id":"rule"},"references":["IFRS 13 §49"],"exercise":{"prompt":{"fr":"","en":"What is the nature of the portfolio exception?","es":""},"explanation":{"fr":"","en":"It is a method choice applied consistently (IFRS 13).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"An accounting policy choice applied consistently for the same portfolio","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"A requirement for every group of financial instruments","es":""},"correct":false,"feedback":{"fr":"","en":"The exception is a choice, conditional on net management; it is not imposed on every group (IFRS 13, para. 49).","es":""}},{"id":"C","text":{"fr":"","en":"An option applicable period by period at the entity's whim","es":""},"correct":false,"feedback":{"fr":"","en":"The choice is applied consistently from one period to the next for the same portfolio (IFRS 13).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000064","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.PORTFOLIO.SCOPE_OF_EXCEPTION"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"FINANCE","tested_point":"EXCEPTION_SCOPE_IFRS9","difficulty":"INTERMEDIATE","estimated_time_s":30,"lesson_id":"LS.IFRS13.000007","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000007","section_id":"rule"},"references":["IFRS 13 §52"],"exercise":{"prompt":{"fr":"","en":"The exception applies to contracts within the scope of IFRS 9, whether or not they meet the IAS 32 definitions of financial asset or financial liability.","es":""},"explanation":{"fr":"","en":"Rule to remember: the exception's scope follows that of IFRS 9 (or IAS 39) (IFRS 13, para. 52).","es":""},"common_error":{"fr":"","en":"Limiting the exception to instruments meeting IAS 32 only.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000065","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.PORTFOLIO.SCOPE_OF_EXCEPTION"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"FINANCE","tested_point":"EXCEPTION_SCOPE_CLASSIFY","difficulty":"ADVANCED","estimated_time_s":75,"lesson_id":"LS.IFRS13.000007","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000007","section_id":"rule"},"references":["IFRS 13 §52"],"exercise":{"prompt":{"fr":"","en":"Classify each situation: can the portfolio exception apply, all other conditions being met?","es":""},"explanation":{"fr":"","en":"The scope follows that of IFRS 9 (IFRS 13, para. 52), and each item must be measured at fair value at the reporting date (IFRS 13, para. 49). Rule to remember: without IFRS 9 scope or fair value measurement, no exception.","es":""},"common_error":{"fr":"","en":"Applying the exception to a group not measured at fair value.","es":""},"format":"CLASSIFICATION","categories":[{"id":"YES","text":{"fr":"","en":"May apply","es":""}},{"id":"NO","text":{"fr":"","en":"Cannot apply","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Group of derivatives within the scope of IFRS 9, managed on a net basis","es":""},"category":"YES"},{"id":"I2","text":{"fr":"","en":"Contract within IFRS 9 not meeting IAS 32 definitions, managed on a net basis","es":""},"category":"YES"},{"id":"I3","text":{"fr":"","en":"Group of instruments outside the scope of IFRS 9 and IAS 39","es":""},"category":"NO"},{"id":"I4","text":{"fr":"","en":"Group measured at amortised cost in the accounts, not at fair value at the reporting date","es":""},"category":"NO"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000066","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.PORTFOLIO.MEASUREMENT_OF_NET_POSITION"],"dimension":"CALCULATION","format":"CALCULATION","context":"FINANCE","tested_point":"NET_POSITION_CALC","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IFRS13.000007","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000007","section_id":"numeric"},"references":["IFRS 13 §53","IFRS 13 §54"],"exercise":{"prompt":{"fr":"","en":"Case convention: 100 long and 80 short contracts (substantially identical risk); bid €44,800, ask €45,200; the net long position is sold at the bid. Calculate fair value contract by contract, on the net position and the difference.","es":""},"explanation":{"fr":"","en":"Contract by contract: 100 × 44,800 − 80 × 45,200 = 864,000; net position: 20 × 44,800 = 896,000; difference 32,000 = 80 × 400. Rule to remember: the net position avoids paying the bid-ask gap on offset contracts (IFRS 13, para. 53).","es":""},"common_error":{"fr":"","en":"Forgetting that the 80 short contracts are valued at the ask price in the contract-by-contract method.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Long contracts","es":""},"value":"100","unit":"UNITS"},{"label":{"fr":"","en":"Short contracts","es":""},"value":"80","unit":"UNITS"},{"label":{"fr":"","en":"Bid price","es":""},"value":"44800","unit":"EUR"},{"label":{"fr":"","en":"Ask price","es":""},"value":"45200","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Fair value contract by contract","es":""},"answer":864000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Fair value of the net position","es":""},"answer":896000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Difference","es":""},"answer":32000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Fair value contract by contract","es":""},"expression":"a * b - c * d","variables":[{"symbol":"a","meaning":{"fr":"","en":"Long contracts","es":""},"value":100,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Bid price","es":""},"value":44800,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Short contracts","es":""},"value":80,"unit":"UNITS"},{"symbol":"d","meaning":{"fr":"","en":"Ask price","es":""},"value":45200,"unit":"EUR"}],"result":864000,"unit":"EUR"}],"rationale":{"fr":"","en":"the net position avoids paying the bid-ask gap on offset contracts (IFRS 13, para. 53).","es":""},"references":["REF.IFRS13.53"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000067","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.PORTFOLIO.MEASUREMENT_OF_NET_POSITION"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"FINANCE","tested_point":"OFFSET_RISKS_SPOT","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IFRS13.000007","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000007","section_id":"rule-measure"},"references":["IFRS 13 §54"],"exercise":{"prompt":{"fr":"","en":"Spot the errors in a risk offsetting file.","es":""},"explanation":{"fr":"","en":"Rule to remember: substantially identical market risks, duration included (IFRS 13, para. 54); for credit risk, netting and collateral arrangements taken into account.","es":""},"common_error":{"fr":"","en":"Offsetting on the mere 'interest rate risk' label.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"A 2-year rate exposure is offset against a 20-year rate exposure, since both are 'interest rate risk'.","es":""},"erroneous":true,"correction":{"fr":"","en":"Offset risks must be substantially the same (IFRS 13, para. 54), and so must the duration of the exposure.","es":""}},{"id":"S2","text":{"fr":"","en":"Two exposures of the same nature and duration on the same underlying are offset.","es":""},"erroneous":false},{"id":"S3","text":{"fr":"","en":"For counterparty credit risk, netting and collateral arrangements are ignored.","es":""},"erroneous":true,"correction":{"fr":"","en":"The net position takes into account netting and collateral arrangements that limit the exposure (IFRS 13).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000068","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.PORTFOLIO.MEASUREMENT_OF_NET_POSITION"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"FINANCE","tested_point":"ALLOCATION_BASIS","difficulty":"INTERMEDIATE","estimated_time_s":45,"lesson_id":"LS.IFRS13.000007","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000007","section_id":"rule-measure"},"references":["IFRS 13 §53"],"exercise":{"prompt":{"fr":"","en":"How are portfolio adjustments allocated to individual items?","es":""},"explanation":{"fr":"","en":"Adjustments are allocated on a reasonable and consistent basis (IFRS 13).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"On a reasonable and consistent basis","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Entirely on the largest item","es":""},"correct":false,"feedback":{"fr":"","en":"No rule designates a single item; the allocation follows a reasonable and consistent basis (IFRS 13).","es":""}},{"id":"C","text":{"fr":"","en":"Freely from period to period depending on the effect sought","es":""},"correct":false,"feedback":{"fr":"","en":"The basis must be reasonable and consistent, not changed according to the desired result (IFRS 13).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000069","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.PORTFOLIO.NET_EXPOSURE_EXCEPTION"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"BANKING","tested_point":"EXCEPTION_MINI_CASE","difficulty":"EXPERT","estimated_time_s":240,"lesson_id":"LS.IFRS13.000007","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000007","section_id":"judgment"},"references":["IFRS 13 §49","IFRS 13 §54","IFRS 13 §96"],"exercise":{"prompt":{"fr":"","en":"Assess the application of the portfolio exception by the fictitious company Trésorerie Mariel.","es":""},"explanation":{"fr":"","en":"Rule to remember: conditions met, consistent choice and disclosure provided (IFRS 13, para. 49).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Trésorerie Mariel (fictitious) holds a group of 5-year interest rate derivatives, measured at fair value at each reporting date, all within the scope of IFRS 9. Case data: the risk management policy, approved by management, provides for net management of this group; internal reports to management present the net position; long and short positions relate to the same 5-year rate risk. This year, the entity considers applying the exception for this half-year only.","es":""},"exhibits":[],"parts":[{"prompt":{"fr":"","en":"Which conditions are met according to the case data? (more than one)","es":""},"explanation":{"fr":"","en":"The three conditions of paragraph 49 are met; consistency from period to period is not (IFRS 13, para. 49).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Documented net management","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Net reporting to management","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Fair value measurement of each item at the reporting date","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Consistent application from one period to the next","es":""},"correct":false,"feedback":{"fr":"","en":"Applying the exception for one half-year only does not meet the requirement of consistency from period to period (IFRS 13).","es":""}}],"id":"P1","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"What does the professional conclude on the plan to apply the exception for one half-year only?","es":""},"explanation":{"fr":"","en":"A method choice is maintained consistently for the same portfolio (IFRS 13).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is incompatible with a method choice applied consistently to the same portfolio","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It is possible: the exception is a one-off option","es":""},"correct":false,"feedback":{"fr":"","en":"The exception is a method choice applied consistently (IFRS 13).","es":""}},{"id":"C","text":{"fr":"","en":"It is mandatory because the group is managed net","es":""},"correct":false,"feedback":{"fr":"","en":"The standard presents the exception as a conditional choice, not an obligation (IFRS 13, para. 48).","es":""}}],"id":"P2","dimension":"ANALYSIS"},{"prompt":{"fr":"","en":"If the exception is applied, the entity must provide the related disclosure on this method choice.","es":""},"explanation":{"fr":"","en":"Rule to remember: using the exception comes with a specific disclosure (IFRS 13).","es":""},"common_error":{"fr":"","en":"Applying the exception without disclosing that policy choice.","es":""},"format":"TRUE_FALSE","answer":true,"id":"P3","dimension":"DOCUMENTATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000070","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.INITIAL.TRANSACTION_PRICE_VS_FV"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"ENTRY_EXIT_INITIAL","difficulty":"BEGINNER","estimated_time_s":30,"lesson_id":"LS.IFRS13.000008","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000008","section_id":"rule-price"},"references":["IFRS 13 §57"],"exercise":{"prompt":{"fr":"","en":"At initial recognition, the transaction price is an entry price whereas fair value is an exit price.","es":""},"explanation":{"fr":"","en":"Rule to remember: the two prices may differ (IFRS 13, para. 57).","es":""},"common_error":{"fr":"","en":"Automatically equating the two prices.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000071","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.INITIAL.TRANSACTION_PRICE_VS_FV"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"WHEN_DIFFER","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IFRS13.000008","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000008","section_id":"rule-price"},"references":["IFRS 13 §58"],"exercise":{"prompt":{"fr":"","en":"An entity buys equipment from its parent at a clearly favourable price. What should it do with the transaction price?","es":""},"explanation":{"fr":"","en":"Related parties: the transaction price is not necessarily fair value (IFRS 13, para. 58).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Check that it represents fair value, since this is a related party transaction","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Accept it as fair value without review","es":""},"correct":false,"feedback":{"fr":"","en":"A related party transaction is a case where the price may differ from fair value (IFRS 13, para. 58).","es":""}},{"id":"C","text":{"fr":"","en":"Replace it with the parent's production cost","es":""},"correct":false,"feedback":{"fr":"","en":"The seller's cost is not the exit price; the transaction price is checked against fair value (IFRS 13).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000072","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.INITIAL.TRANSACTION_PRICE_VS_FV"],"dimension":"APPLICATION","format":"ORDERING","context":"GENERIC","tested_point":"CHECK_TP_ORDER","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS13.000008","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000008","section_id":"rule-dayone"},"references":["IFRS 13 §59"],"exercise":{"prompt":{"fr":"","en":"Put in order the (teaching) approach at initial recognition.","es":""},"explanation":{"fr":"","en":"Approach: check before concluding, then let the item's standard settle the treatment (IFRS 13, paras. 58 and 60). Rule to remember: this order is a teaching approach, not imposed.","es":""},"common_error":{"fr":"","en":"Recognising the difference before examining the transaction facts and estimating fair value.","es":""},"format":"ORDERING","steps":[{"id":"S1","text":{"fr":"","en":"Note the transaction price","es":""}},{"id":"S2","text":{"fr":"","en":"Examine the transaction facts (related parties, duress, market, unit)","es":""}},{"id":"S3","text":{"fr":"","en":"Estimate fair value (technique if needed)","es":""}},{"id":"S4","text":{"fr":"","en":"Calculate any difference","es":""}},{"id":"S5","text":{"fr":"","en":"Apply the item's standard for the treatment of the difference","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000073","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.INITIAL.TRANSACTION_PRICE_VS_FV"],"dimension":"CALCULATION","format":"CALCULATION","context":"FINANCE","tested_point":"DAY_ONE_CALC","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IFRS13.000008","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000008","section_id":"numeric"},"references":["IFRS 13 §59","IFRS 13 §60"],"exercise":{"prompt":{"fr":"","en":"Placements Orvelle acquires an instrument for €980,000; the fair value from a technique with observable inputs is €1,000,000. Calculate the difference.","es":""},"explanation":{"fr":"","en":"1,000,000 − 980,000 = 20,000. Rule to remember: the difference is calculated before determining its treatment, which depends on the applicable standard (IFRS 13, para. 60).","es":""},"common_error":{"fr":"","en":"Calculating the difference the wrong way round or adding costs.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Transaction price","es":""},"value":"980000","unit":"EUR"},{"label":{"fr":"","en":"Fair value (technique)","es":""},"value":"1000000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Difference (fair value − price)","es":""},"answer":20000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Difference (fair value − price)","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value (technique)","es":""},"value":1000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Transaction price","es":""},"value":980000,"unit":"EUR"}],"result":20000,"unit":"EUR"}],"rationale":{"fr":"","en":"the difference is calculated before determining its treatment, which depends on the applicable standard (IFRS 13, para. 60).","es":""},"references":["REF.IFRS13.60"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000074","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.INITIAL.DAY_ONE_GAIN_LOSS"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"GENERIC","tested_point":"DAY_ONE_GENERAL_RULE","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS13.000008","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000008","section_id":"rule-dayone"},"references":["IFRS 13 §60"],"exercise":{"prompt":{"fr":"","en":"Complete the sentence.","es":""},"explanation":{"fr":"","en":"Rule to remember: profit or loss, unless another standard provides otherwise (IFRS 13, para. 60).","es":""},"common_error":{"fr":"","en":"Taking the difference to equity or letting management decide: it goes to profit or loss unless another standard says otherwise.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"If required fair value differs from the transaction price, the difference is recognised in {{lieu}}, unless {{exception}}.","es":""},"blanks":[{"id":"lieu","mode":"CHOICE","choices":[{"id":"PL","text":{"fr":"","en":"profit or loss","es":""}},{"id":"EQ","text":{"fr":"","en":"equity","es":""}}],"answer":"PL"},{"id":"exception","mode":"CHOICE","choices":[{"id":"OTHER","text":{"fr":"","en":"another standard provides otherwise","es":""}},{"id":"MGT","text":{"fr":"","en":"management decides","es":""}}],"answer":"OTHER"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000075","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.INITIAL.DAY_ONE_GAIN_LOSS"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"FINANCE","tested_point":"DAY_ONE_ERRORS","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IFRS13.000008","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000008","section_id":"pitfalls"},"references":["IFRS 13 §60"],"exercise":{"prompt":{"fr":"","en":"Spot the flawed reasoning on the day-one difference.","es":""},"explanation":{"fr":"","en":"Rule to remember: day-one difference = initial recognition; treatment = general rule unless otherwise provided (IFRS 13, para. 60).","es":""},"common_error":{"fr":"","en":"Confusing the day-one difference with later changes.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"IFRS 13 alone is enough to settle the treatment of the day-one difference in all circumstances.","es":""},"erroneous":true,"correction":{"fr":"","en":"IFRS 13's rule applies unless another standard provides otherwise (IFRS 13, para. 60).","es":""}},{"id":"S2","text":{"fr":"","en":"A difference can exist without any error: entry and exit prices differ.","es":""},"erroneous":false},{"id":"S3","text":{"fr":"","en":"The day-one difference is identical to later fair value changes.","es":""},"erroneous":true,"correction":{"fr":"","en":"The day-one difference arises at initial recognition; later changes are a different matter (IFRS 13, para. 60).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000076","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.INITIAL.TRANSACTION_PRICE_VS_FV"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"INDUSTRIAL","tested_point":"INITIAL_MINI_CASE","difficulty":"EXPERT","estimated_time_s":240,"lesson_id":"LS.IFRS13.000008","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000008","section_id":"judgment"},"references":["IFRS 13 §58","IFRS 13 §59","IFRS 13 §60"],"exercise":{"prompt":{"fr":"","en":"Analyse the acquisition of an asset by the fictitious company Mécanique Torrel from its main shareholder.","es":""},"explanation":{"fr":"","en":"Rule to remember: difference calculated under IFRS 13, treatment per the general rule and the applicable standard (IFRS 13, para. 60).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Mécanique Torrel (fictitious) buys a machine for €1,200,000 from its main shareholder (related party). Case data: an independent valuer, using a technique with observable inputs, estimates the machine's fair value at €1,000,000 on the acquisition date. The standard governing the machine requires fair value measurement at initial recognition in this situation (teaching assumption).","es":""},"exhibits":[],"parts":[{"prompt":{"fr":"","en":"Why is the transaction price not retained outright as fair value?","es":""},"explanation":{"fr":"","en":"Between related parties, the price may differ from fair value (IFRS 13, para. 58).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The transaction is between related parties, a case where the price may differ from fair value","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Because an entry price can never be a fair value","es":""},"correct":false,"feedback":{"fr":"","en":"The transaction price equals fair value in many cases; it is simply not automatic (IFRS 13, para. 58).","es":""}},{"id":"C","text":{"fr":"","en":"Because the machine is expensive","es":""},"correct":false,"feedback":{"fr":"","en":"The amount is not enough: the facts of the transaction matter (IFRS 13).","es":""}}],"id":"P1","dimension":"ANALYSIS"},{"prompt":{"fr":"","en":"Calculate the difference between the transaction price and fair value.","es":""},"explanation":{"fr":"","en":"1,200,000 − 1,000,000 = 200,000 paid above fair value. Rule to remember: calculating the difference precedes determining its treatment (IFRS 13, para. 60).","es":""},"common_error":{"fr":"","en":"Computing the difference the wrong way round or looking for its treatment before quantifying it.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Transaction price","es":""},"value":"1200000","unit":"EUR"},{"label":{"fr":"","en":"Fair value","es":""},"value":"1000000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Difference (price − fair value)","es":""},"answer":200000,"tolerance":0,"unit":"EUR"}],"id":"P2","dimension":"CALCULATION","formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Difference (price − fair value)","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Transaction price","es":""},"value":1200000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Fair value","es":""},"value":1000000,"unit":"EUR"}],"result":200000,"unit":"EUR"}],"rationale":{"fr":"","en":"calculating the difference precedes determining its treatment (IFRS 13, para. 60).","es":""},"references":["REF.IFRS13.60"]}},{"prompt":{"fr":"","en":"Who determines whether the €200,000 goes to profit or loss or elsewhere?","es":""},"explanation":{"fr":"","en":"Professional judgment: read the item's standard for the treatment and document the conclusion (IFRS 13, para. 60).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The standard applicable to the machine, IFRS 13's general rule being profit or loss unless otherwise provided","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The independent valuer","es":""},"correct":false,"feedback":{"fr":"","en":"The valuer estimates fair value; they do not decide the accounting treatment (IFRS 13, para. 60).","es":""}},{"id":"C","text":{"fr":"","en":"The main shareholder","es":""},"correct":false,"feedback":{"fr":"","en":"The treatment does not depend on the counterparty's wishes but on the standards (IFRS 13, para. 60).","es":""}}],"id":"P3","dimension":"PROFESSIONAL_JUDGMENT"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000077","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.INITIAL.DAY_ONE_GAIN_LOSS"],"dimension":"RECOGNITION","format":"MATCHING","context":"GENERIC","tested_point":"WHO_DECIDES_MATCH","difficulty":"BEGINNER","estimated_time_s":75,"lesson_id":"LS.IFRS13.000008","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000008","section_id":"rule-dayone"},"references":["IFRS 13 §60"],"exercise":{"prompt":{"fr":"","en":"Match each question with what answers it.","es":""},"explanation":{"fr":"","en":"Rule to remember: IFRS 13 measures, the item's standard decides any exceptional treatment of the difference (IFRS 13, para. 60).","es":""},"common_error":{"fr":"","en":"Expecting IFRS 13 to set the treatment of the day-one difference: the item's standard decides it.","es":""},"format":"MATCHING","left":[{"id":"L1","text":{"fr":"","en":"What is the fair value at the acquisition date?","es":""}},{"id":"L2","text":{"fr":"","en":"Can the day-one difference follow a treatment other than profit or loss?","es":""}}],"right":[{"id":"R3","text":{"fr":"","en":"Management's choice","es":""}},{"id":"R2","text":{"fr":"","en":"The standard applicable to the item","es":""}},{"id":"R1","text":{"fr":"","en":"The IFRS 13 measurement framework","es":""}}],"pairs":[{"left":"L1","right":"R1"},{"left":"L2","right":"R2"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000078","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.TECHNIQUES.APPROACHES"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"APPROACH_CLASSIFY","difficulty":"BEGINNER","estimated_time_s":75,"lesson_id":"LS.IFRS13.000009","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000009","section_id":"rule-approaches"},"references":["IFRS 13 §B5","IFRS 13 §B8","IFRS 13 §B10"],"exercise":{"prompt":{"fr":"","en":"Classify each method under the approach it belongs to.","es":""},"explanation":{"fr":"","en":"Market: comparable transactions and multiples (IFRS 13); cost: replacement after obsolescence; income: discounted future amounts. Rule to remember: each approach uses a different type of data.","es":""},"common_error":{"fr":"","en":"Classifying a replacement cost under the market approach.","es":""},"format":"CLASSIFICATION","categories":[{"id":"MARKET","text":{"fr":"","en":"Market approach","es":""}},{"id":"COST","text":{"fr":"","en":"Cost approach","es":""}},{"id":"INCOME","text":{"fr":"","en":"Income approach","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Multiples of comparable companies","es":""},"category":"MARKET"},{"id":"I2","text":{"fr":"","en":"Current replacement cost after obsolescence","es":""},"category":"COST"},{"id":"I3","text":{"fr":"","en":"Discounted future cash flows","es":""},"category":"INCOME"},{"id":"I4","text":{"fr":"","en":"Prices of recent transactions in comparable items","es":""},"category":"MARKET"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000079","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.TECHNIQUES.APPROACHES"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"TECHNIQUE_OBJECTIVE","difficulty":"BEGINNER","estimated_time_s":30,"lesson_id":"LS.IFRS13.000009","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000009","section_id":"understand"},"references":["IFRS 13 §62"],"exercise":{"prompt":{"fr":"","en":"Whatever the technique, the objective is to estimate the price of an orderly transaction in the principal (or most advantageous) market.","es":""},"explanation":{"fr":"","en":"Rule to remember: the technique is a means; the market objective stays the same (IFRS 13).","es":""},"common_error":{"fr":"","en":"Believing an internal technique changes the objective of the measurement.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000080","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.TECHNIQUES.TECHNIQUE_SELECTION"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"MAXIMISE_OBSERVABLE","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IFRS13.000009","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000009","section_id":"rule-select"},"references":["IFRS 13 §61"],"exercise":{"prompt":{"fr":"","en":"What must the entity do regarding observable inputs?","es":""},"explanation":{"fr":"","en":"Relevant observable inputs are to be maximised (IFRS 13).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Ignore them if it has internal models","es":""},"correct":false,"feedback":{"fr":"","en":"Techniques maximise the use of relevant observable inputs, whatever the model (IFRS 13).","es":""}},{"id":"B","text":{"fr":"","en":"Use them only as an after-the-fact check","es":""},"correct":false,"feedback":{"fr":"","en":"It is not a mere check: they are to be maximised within the technique itself (IFRS 13).","es":""}},{"id":"C","text":{"fr":"","en":"Maximise the use of relevant observable inputs","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000081","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.TECHNIQUES.TECHNIQUE_SELECTION"],"dimension":"CALCULATION","format":"CALCULATION","context":"FINANCE","tested_point":"WEIGHTED_AVERAGE","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IFRS13.000009","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000009","section_id":"numeric"},"references":["IFRS 13 §63"],"exercise":{"prompt":{"fr":"","en":"Teaching assumption (weights = judgment): three indications for an unlisted holding. Calculate fair value as a weighted average.","es":""},"explanation":{"fr":"","en":"0.40 × 1,200,000 = 480,000; 0.50 × 1,350,000 = 675,000; 0.10 × 1,100,000 = 110,000; total 1,265,000. Rule to remember: weights reflect relevance and reliability (judgment) and sum to 100% (IFRS 13).","es":""},"common_error":{"fr":"","en":"Using the simple average (1,216,667).","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Market €1,200,000 / weight","es":""},"value":"40","unit":"PERCENT"},{"label":{"fr":"","en":"Income €1,350,000 / weight","es":""},"value":"50","unit":"PERCENT"},{"label":{"fr":"","en":"Cost €1,100,000 / weight","es":""},"value":"10","unit":"PERCENT"}],"steps":[{"id":"S1","label":{"fr":"","en":"Market approach contribution","es":""},"answer":480000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Income approach contribution","es":""},"answer":675000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Weighted fair value","es":""},"answer":1265000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000082","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.TECHNIQUES.TECHNIQUE_SELECTION"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MULTIPLE_CHOICE","context":"FINANCE","tested_point":"WEIGHT_JUSTIFY","difficulty":"ADVANCED","estimated_time_s":60,"lesson_id":"LS.IFRS13.000009","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000009","section_id":"judgment"},"references":["IFRS 13 §63"],"exercise":{"prompt":{"fr":"","en":"Which elements justify a higher weight for an indication? (more than one)","es":""},"explanation":{"fr":"","en":"Professional judgment: weight by the relevance and reliability of the indications (IFRS 13).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It gives the amount closest to management's budget","es":""},"correct":false,"feedback":{"fr":"","en":"An entity target is neither relevance nor reliability (IFRS 13).","es":""}},{"id":"B","text":{"fr":"","en":"It is the simplest to calculate","es":""},"correct":false,"feedback":{"fr":"","en":"Simplicity is not a weighting criterion; relevance and reliability are assessed (IFRS 13).","es":""}},{"id":"C","text":{"fr":"","en":"It rests on abundant observable inputs","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The comparables used are very close to the item measured","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000083","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.TECHNIQUES.CALIBRATION"],"dimension":"CALCULATION","format":"CALCULATION","context":"FINANCE","tested_point":"CALIBRATION_CALC","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IFRS13.000009","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000009","section_id":"numeric"},"references":["IFRS 13 §64"],"exercise":{"prompt":{"fr":"","en":"The transaction price (€1,000,000) is the initial fair value; a model with unobservable inputs gives €940,000. Case convention: the adjustment stays constant and the model gives €980,000 at the reporting date. Calculate the calibration adjustment and the closing fair value.","es":""},"explanation":{"fr":"","en":"1,000,000 − 940,000 = 60,000; 980,000 + 60,000 = 1,040,000 (case convention: constant adjustment). Rule to remember: calibration makes the initial result equal the transaction price when that equals fair value (IFRS 13).","es":""},"common_error":{"fr":"","en":"Forgetting the adjustment at the reporting date (980,000).","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Transaction price = initial fair value","es":""},"value":"1000000","unit":"EUR"},{"label":{"fr":"","en":"Model's initial result","es":""},"value":"940000","unit":"EUR"},{"label":{"fr":"","en":"Model result at reporting date","es":""},"value":"980000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Calibration adjustment","es":""},"answer":60000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Fair value at reporting date","es":""},"answer":1040000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Calibration adjustment","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Transaction price = initial fair value","es":""},"value":1000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Model's initial result","es":""},"value":940000,"unit":"EUR"}],"result":60000,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"Fair value at reporting date","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Model result at reporting date","es":""},"value":980000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Calibration adjustment","es":""},"value":60000,"unit":"EUR"}],"result":1040000,"unit":"EUR"}],"rationale":{"fr":"","en":"calibration makes the initial result equal the transaction price when that equals fair value (IFRS 13).","es":""},"references":["REF.IFRS13.64"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000084","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.TECHNIQUES.CHANGE_OF_TECHNIQUE"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"CHANGE_TECHNIQUE","difficulty":"INTERMEDIATE","estimated_time_s":45,"lesson_id":"LS.IFRS13.000009","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000009","section_id":"rule-select"},"references":["IFRS 13 §65"],"exercise":{"prompt":{"fr":"","en":"An entity moves from the market approach to the income approach. When is this change appropriate?","es":""},"explanation":{"fr":"","en":"A change is appropriate if it gives an equally or more representative measurement (IFRS 13, para. 65).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"When it leads to a measurement equally or more representative of fair value","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"When the new result is higher","es":""},"correct":false,"feedback":{"fr":"","en":"The size of the result is not the criterion; only the representativeness of fair value matters (IFRS 13, para. 65).","es":""}},{"id":"C","text":{"fr":"","en":"Whenever the entity wishes","es":""},"correct":false,"feedback":{"fr":"","en":"Techniques are applied consistently; a change must be justified (IFRS 13, para. 65).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000085","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.TECHNIQUES.PV_TECHNIQUES"],"dimension":"CALCULATION","format":"CALCULATION","context":"FINANCE","tested_point":"DISCOUNT_RATE_ADJ","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IFRS13.000009","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000009","section_id":"numeric"},"references":["IFRS 13 §B14"],"exercise":{"prompt":{"fr":"","en":"Discount rate adjustment technique: €100,000 received at the end of each of the next 3 years (contractual cash flows); rate observed on comparable items: 5%. Calculate the present value of each cash flow (rounded to the euro) then the total.","es":""},"explanation":{"fr":"","en":"100,000 / 1.05 = 95,238; / 1.05² = 90,703; / 1.05³ = 86,384; total ≈ 272,325. Rule to remember: one set of cash flows, one rate observed on comparable items with similar cash flows (IFRS 13).","es":""},"common_error":{"fr":"","en":"Discounting the three cash flows with the same exponent.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Annual cash flow","es":""},"value":"100000","unit":"EUR"},{"label":{"fr":"","en":"Duration","es":""},"value":"3","unit":"YEARS"},{"label":{"fr":"","en":"Rate","es":""},"value":"5","unit":"PERCENT"}],"steps":[{"id":"S1","label":{"fr":"","en":"PV of year 1 cash flow","es":""},"answer":95238,"tolerance":1,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"PV of year 2 cash flow","es":""},"answer":90703,"tolerance":1,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"PV of year 3 cash flow","es":""},"answer":86384,"tolerance":1,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Fair value (total)","es":""},"answer":272325,"tolerance":2,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"PV of year 1 cash flow","es":""},"expression":"a / (1 + b)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Annual cash flow","es":""},"value":100000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Rate","es":""},"value":5,"unit":"PERCENT"}],"result":95238,"unit":"EUR"}],"rationale":{"fr":"","en":"one set of cash flows, one rate observed on comparable items with similar cash flows (IFRS 13).","es":""},"references":["REF.IFRS13.B14"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000086","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.TECHNIQUES.PV_TECHNIQUES"],"dimension":"CALCULATION","format":"CALCULATION","context":"FINANCE","tested_point":"EXPECTED_PV","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IFRS13.000009","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000009","section_id":"numeric"},"references":["IFRS 13 §B14"],"exercise":{"prompt":{"fr":"","en":"Expected present value: a cash flow in 2 years of €100,000 (probability 60%), €70,000 (30%) or 0 (10%). Teaching assumption: rate of 4% (risk-free 3% adjusted by a 1% risk premium). Calculate the expected cash flow and the present value (rounded to the euro).","es":""},"explanation":{"fr":"","en":"0.6 × 100,000 + 0.3 × 70,000 + 0.1 × 0 = 81,000; 81,000 / 1.04² = 74,889. Rule to remember: weight the cash flows by their probabilities then discount; here, as a teaching assumption, at the risk-free rate adjusted for a risk premium, one of the methods of treating risk (IFRS 13).","es":""},"common_error":{"fr":"","en":"Discounting only the most likely scenario (100,000).","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Scenario 1: €100,000","es":""},"value":"60","unit":"PERCENT"},{"label":{"fr":"","en":"Scenario 2: €70,000","es":""},"value":"30","unit":"PERCENT"},{"label":{"fr":"","en":"Scenario 3: €0","es":""},"value":"10","unit":"PERCENT"},{"label":{"fr":"","en":"Rate","es":""},"value":"4","unit":"PERCENT"}],"steps":[{"id":"S1","label":{"fr":"","en":"Expected cash flow","es":""},"answer":81000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Expected present value","es":""},"answer":74889,"tolerance":1,"unit":"EUR"}],"formula":{"lines":[{"step":"S2","meaning":{"fr":"","en":"Expected present value","es":""},"expression":"a / (1 + b)^2","variables":[{"symbol":"a","meaning":{"fr":"","en":"Expected cash flow","es":""},"value":81000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Rate","es":""},"value":4,"unit":"PERCENT"}],"result":74889,"unit":"EUR"}],"rationale":{"fr":"","en":"weight the cash flows by their probabilities then discount; here, as a teaching assumption, at the risk-free rate adjusted for a risk premium, one of the methods of treating risk (IFRS 13).","es":""},"references":["REF.IFRS13.B14"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000087","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.TECHNIQUES.PV_TECHNIQUES"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"ENERGY","tested_point":"PV_CONSISTENCY","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IFRS13.000009","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000009","section_id":"rule-pv"},"references":["IFRS 13 §B14"],"exercise":{"prompt":{"fr":"","en":"Spot the inconsistencies between cash flows and discount rate.","es":""},"explanation":{"fr":"","en":"Rule to remember: consistency between cash flows and rate (inflation, currency, risk) (IFRS 13).","es":""},"common_error":{"fr":"","en":"Mixing currency or risk assumptions.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"Cash flows estimated in dollars are discounted with a rate based on euro bonds.","es":""},"erroneous":true,"correction":{"fr":"","en":"Cash flows and rate must be consistent, notably as to currency (IFRS 13).","es":""}},{"id":"S2","text":{"fr":"","en":"Cash flows including expected inflation are discounted with a nominal rate.","es":""},"erroneous":false},{"id":"S3","text":{"fr":"","en":"Cash flows already adjusted for default risk are discounted with a rate again including a premium for that risk.","es":""},"erroneous":true,"correction":{"fr":"","en":"Risk should not be counted twice: cash flows and rate must stay consistent on risk assumptions (IFRS 13).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000088","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.TECHNIQUES.TECHNIQUE_SELECTION"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"FINANCE","tested_point":"TECHNIQUES_MINI_CASE","difficulty":"EXPERT","estimated_time_s":240,"lesson_id":"LS.IFRS13.000009","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000009","section_id":"judgment"},"references":["IFRS 13 §61","IFRS 13 §63","IFRS 13 §64","IFRS 13 §65"],"exercise":{"prompt":{"fr":"","en":"Analyse the measurement of an unlisted holding by the fictitious company Capital Verane.","es":""},"explanation":{"fr":"","en":"Rule to remember: suitable techniques, indications weighted by relevance and reliability, justification on file (IFRS 13).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Capital Verane (fictitious) measures an unlisted holding. Case data: few recent comparable transactions (market indication: €1,200,000); detailed cash flow forecasts and an observable rate (income indication: €1,350,000); the cost approach is of little relevance (€1,100,000). The professional uses weights of 40% / 50% / 10% (judgment). The director asks to keep only the highest indication.","es":""},"exhibits":[],"parts":[{"prompt":{"fr":"","en":"Calculate the weighted fair value.","es":""},"explanation":{"fr":"","en":"480,000 + 675,000 + 110,000 = 1,265,000. Rule to remember: weighted sum of the indications (IFRS 13).","es":""},"common_error":{"fr":"","en":"Taking a simple average of the three indications instead of weighting them.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Indications (market / income / cost)","es":""},"value":"1200000 / 1350000 / 1100000","unit":"TEXT"},{"label":{"fr":"","en":"Weights","es":""},"value":"40 / 50 / 10","unit":"TEXT"}],"steps":[{"id":"S1","label":{"fr":"","en":"Weighted fair value","es":""},"answer":1265000,"tolerance":0,"unit":"EUR"}],"id":"P1","dimension":"CALCULATION"},{"prompt":{"fr":"","en":"What does the professional answer to the director's request?","es":""},"explanation":{"fr":"","en":"Weighting by relevance and reliability, not by amount (IFRS 13).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Indications are weighted by relevance and reliability, not by amount","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The highest indication is kept for consistency with the budget","es":""},"correct":false,"feedback":{"fr":"","en":"The entity's budget is not a relevance or reliability criterion (IFRS 13).","es":""}},{"id":"C","text":{"fr":"","en":"Only one technique is allowed, so the income one is used","es":""},"correct":false,"feedback":{"fr":"","en":"Several techniques may be used and weighted (IFRS 13).","es":""}}],"id":"P2","dimension":"ANALYSIS"},{"prompt":{"fr":"","en":"What should the file keep? (more than one)","es":""},"explanation":{"fr":"","en":"Professional judgment: document choices, inputs and weights (IFRS 13).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The reasons for the weights used","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The source of the observable inputs used","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The reasons for discarding or reducing the cost approach","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Proof that no other technique exists","es":""},"correct":false,"feedback":{"fr":"","en":"Techniques are chosen according to circumstances and available data, with no proof of exhaustiveness (IFRS 13).","es":""}}],"id":"P3","dimension":"DOCUMENTATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000089","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.TECHNIQUES.APPROACHES"],"dimension":"APPLICATION","format":"MATCHING","context":"GENERIC","tested_point":"APPROACH_MATCH","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS13.000009","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000009","section_id":"rule-approaches"},"references":["IFRS 13 §B5","IFRS 13 §B8","IFRS 13 §B10"],"exercise":{"prompt":{"fr":"","en":"Match each situation to the most natural approach.","es":""},"explanation":{"fr":"","en":"Rule to remember: the approach follows the data available and the circumstances, and is not imposed (IFRS 13).","es":""},"common_error":{"fr":"","en":"Believing the standard imposes an approach per asset type: the choice follows the available data and circumstances.","es":""},"format":"MATCHING","left":[{"id":"L1","text":{"fr":"","en":"Many recent sales of very similar assets","es":""}},{"id":"L2","text":{"fr":"","en":"Specialised asset that would have to be rebuilt","es":""}},{"id":"L3","text":{"fr":"","en":"Asset generating predictable cash flows over several years","es":""}}],"right":[{"id":"R3","text":{"fr":"","en":"Income approach","es":""}},{"id":"R2","text":{"fr":"","en":"Cost approach","es":""}},{"id":"R1","text":{"fr":"","en":"Market approach","es":""}}],"pairs":[{"left":"L1","right":"R1"},{"left":"L2","right":"R2"},{"left":"L3","right":"R3"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000090","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.INPUTS.OBSERVABLE_UNOBSERVABLE"],"dimension":"RULE_KNOWLEDGE","format":"FILL_BLANK","context":"GENERIC","tested_point":"MAXIMISE_MINIMISE","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IFRS13.000010","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000010","section_id":"rule-obs"},"references":["IFRS 13 §67"],"exercise":{"prompt":{"fr":"","en":"Complete the sentence.","es":""},"explanation":{"fr":"","en":"Rule to remember: maximise the observable, minimise the unobservable (IFRS 13).","es":""},"common_error":{"fr":"","en":"Reversing the rule: techniques maximise observable inputs and minimise unobservable ones.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"Techniques {{a}} the use of relevant observable inputs and {{b}} the use of unobservable inputs.","es":""},"blanks":[{"id":"a","mode":"CHOICE","choices":[{"id":"MAX","text":{"fr":"","en":"maximise","es":""}},{"id":"MIN","text":{"fr":"","en":"minimise","es":""}}],"answer":"MAX"},{"id":"b","mode":"CHOICE","choices":[{"id":"MIN","text":{"fr":"","en":"minimise","es":""}},{"id":"MAX","text":{"fr":"","en":"maximise","es":""}}],"answer":"MIN"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000091","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.INPUTS.OBSERVABLE_UNOBSERVABLE"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"OBSERVABLE_CLASSIFY","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS13.000010","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000010","section_id":"rule-obs"},"references":["IFRS 13 §67","IFRS 13 §68"],"exercise":{"prompt":{"fr":"","en":"Classify each input.","es":""},"explanation":{"fr":"","en":"Market prices provide observable inputs (IFRS 13); estimates without market support are unobservable. Rule to remember: market origin makes an input observable.","es":""},"common_error":{"fr":"","en":"Confusing an internal estimate with market data.","es":""},"format":"CLASSIFICATION","categories":[{"id":"OBS","text":{"fr":"","en":"Observable","es":""}},{"id":"UNOBS","text":{"fr":"","en":"Unobservable","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Share price on an exchange","es":""},"category":"OBS"},{"id":"I2","text":{"fr":"","en":"Published interest rate curve","es":""},"category":"OBS"},{"id":"I3","text":{"fr":"","en":"Internal cash flow forecast with no market equivalent","es":""},"category":"UNOBS"},{"id":"I4","text":{"fr":"","en":"Risk margin estimated by management without market support","es":""},"category":"UNOBS"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000092","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.INPUTS.OBSERVABLE_UNOBSERVABLE"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"WHY_OBSERVABLE_FIRST","difficulty":"INTERMEDIATE","estimated_time_s":45,"lesson_id":"LS.IFRS13.000010","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000010","section_id":"understand"},"references":["IFRS 13 §67"],"exercise":{"prompt":{"fr":"","en":"Why does IFRS 13 prioritise observable inputs?","es":""},"explanation":{"fr":"","en":"Priority to the observable anchors the measurement in the market (IFRS 13).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Because they tie the measurement to the market and make it more verifiable","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Because they are always easier to obtain","es":""},"correct":false,"feedback":{"fr":"","en":"Ease is not the reason: fair value is a market-based measurement (IFRS 13).","es":""}},{"id":"C","text":{"fr":"","en":"Because they avoid any disclosure","es":""},"correct":false,"feedback":{"fr":"","en":"No link: disclosures depend on the hierarchy level (IFRS 13).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000093","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.INPUTS.PREMIUMS_DISCOUNTS"],"dimension":"RECOGNITION","format":"ERROR_SPOT","context":"FINANCE","tested_point":"BLOCKAGE_BAN_STATEMENTS","difficulty":"INTERMEDIATE","estimated_time_s":90,"lesson_id":"LS.IFRS13.000010","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000010","section_id":"rule-premium"},"references":["IFRS 13 §69"],"exercise":{"prompt":{"fr":"","en":"Spot the errors on premiums and discounts.","es":""},"explanation":{"fr":"","en":"Rule to remember: no premium or discount related to the size of the entity's position (IFRS 13, para. 69).","es":""},"common_error":{"fr":"","en":"Treating the quantity held as an asset characteristic.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"A 4% discount is applied because the position represents 15 days of market volume.","es":""},"erroneous":true,"correction":{"fr":"","en":"A discount related to the size of the entity's position is not permitted (IFRS 13, para. 69).","es":""}},{"id":"S2","text":{"fr":"","en":"Inputs must be consistent with the characteristics of the item measured.","es":""},"erroneous":false},{"id":"S3","text":{"fr":"","en":"The size of the position held is a characteristic of the asset.","es":""},"erroneous":true,"correction":{"fr":"","en":"The size of the entity's position is not a characteristic of the asset; the resulting discount is excluded (IFRS 13, para. 69).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000094","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.INPUTS.BID_ASK"],"dimension":"CALCULATION","format":"CALCULATION","context":"FINANCE","tested_point":"BID_ASK_CALC","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IFRS13.000010","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000010","section_id":"numeric"},"references":["IFRS 13 §70"],"exercise":{"prompt":{"fr":"","en":"Case convention: the bid is the most representative for selling 10,000 securities (bid €98.40, ask €98.80). Calculate fair value at the bid and then at mid-market.","es":""},"explanation":{"fr":"","en":"10,000 × 98.40 = 984,000; mid-market (98.40 + 98.80) / 2 = 98.60; 10,000 × 98.60 = 986,000. Rule to remember: the most representative price within the range; mid-market is permitted, not required (IFRS 13, paras. 70 and 71).","es":""},"common_error":{"fr":"","en":"Taking the ask price to value an asset for sale without justification.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Bid price","es":""},"value":"98.40","unit":"EUR"},{"label":{"fr":"","en":"Ask price","es":""},"value":"98.80","unit":"EUR"},{"label":{"fr":"","en":"Securities","es":""},"value":"10000","unit":"UNITS"}],"steps":[{"id":"S1","label":{"fr":"","en":"Fair value at bid","es":""},"answer":984000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Fair value at mid-market (98.60)","es":""},"answer":986000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Fair value at bid","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Securities","es":""},"value":10000,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Bid price","es":""},"value":98.4,"unit":"EUR"}],"result":984000,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"Fair value at mid-market (98.60)","es":""},"expression":"a * ((b + c) / 2)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Securities","es":""},"value":10000,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Bid price","es":""},"value":98.4,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Ask price","es":""},"value":98.8,"unit":"EUR"}],"result":986000,"unit":"EUR"}],"rationale":{"fr":"","en":"the most representative price within the range; mid-market is permitted, not required (IFRS 13, paras. 70 and 71).","es":""},"references":["REF.IFRS13.70"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000095","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.INPUTS.BID_ASK"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"FINANCE","tested_point":"BID_ASK_REPRESENTATIVE","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IFRS13.000010","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000010","section_id":"rule-bidask"},"references":["IFRS 13 §70","IFRS 13 §71"],"exercise":{"prompt":{"fr":"","en":"An entity systematically values its securities at the ask price 'for prudence'. What does the rule say?","es":""},"explanation":{"fr":"","en":"Prudence is not a criterion: only representativeness in the circumstances matters (IFRS 13, para. 70).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The ask price is always mandatory","es":""},"correct":false,"feedback":{"fr":"","en":"No price is imposed a priori within the range (IFRS 13, para. 70).","es":""}},{"id":"B","text":{"fr":"","en":"Mid-market is prohibited","es":""},"correct":false,"feedback":{"fr":"","en":"Mid-market is permitted but not required (IFRS 13, para. 71).","es":""}},{"id":"C","text":{"fr":"","en":"The price in the range most representative of fair value in the circumstances is used","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000096","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.INPUTS.PREMIUMS_DISCOUNTS"],"dimension":"ANALYSIS","format":"MULTIPLE_CHOICE","context":"FINANCE","tested_point":"PREMIUM_CHARACTERISTIC","difficulty":"ADVANCED","estimated_time_s":60,"lesson_id":"LS.IFRS13.000010","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000010","section_id":"rule-premium"},"references":["IFRS 13 §69","IFRS 13 §13"],"exercise":{"prompt":{"fr":"","en":"Which ways of taking a premium or discount into account must be set aside? (more than one)","es":""},"explanation":{"fr":"","en":"Only the size of the entity's position is excluded; consistency with the item's characteristics remains required (IFRS 13, para. 69).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Input consistent with a characteristic of the item measured that participants would use","es":""},"correct":false,"feedback":{"fr":"","en":"Inputs must be consistent with the item's characteristics; this is not something to set aside (IFRS 13, para. 69).","es":""}},{"id":"B","text":{"fr":"","en":"Discount because the entity holds a large quantity of quoted securities","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Premium added to a quoted price solely for the size of the block held","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000097","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.INPUTS.OBSERVABLE_UNOBSERVABLE"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"FINANCE","tested_point":"INPUTS_MINI_CASE","difficulty":"EXPERT","estimated_time_s":240,"lesson_id":"LS.IFRS13.000010","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000010","section_id":"judgment"},"references":["IFRS 13 §67","IFRS 13 §69","IFRS 13 §70"],"exercise":{"prompt":{"fr":"","en":"Analyse the inputs of the valuation model of the fictitious company Ingénierie Salvar.","es":""},"explanation":{"fr":"","en":"Rule to remember: observable inputs first, no size discount, representative price within the range (IFRS 13, paras. 69 and 70).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Ingénierie Salvar (fictitious) values an instrument by discounting. Case data: the yield curve is published by the market; volatility is derived from quoted option prices; the risk margin is estimated by management without market support. For a quoted security it also holds, management proposes a 6% discount because 'the position is large'. The bid is €50.00 and the ask €50.40 (case convention: bid is most representative) for 5,000 securities.","es":""},"exhibits":[],"parts":[{"prompt":{"fr":"","en":"Which model inputs are unobservable? (more than one)","es":""},"explanation":{"fr":"","en":"Only the risk margin has no market support (IFRS 13).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The risk margin estimated by management","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The yield curve published by the market","es":""},"correct":false,"feedback":{"fr":"","en":"A curve published by the market is an observable input (IFRS 13).","es":""}},{"id":"C","text":{"fr":"","en":"Volatility derived from quoted option prices","es":""},"correct":false,"feedback":{"fr":"","en":"An input derived from quoted prices has market support; it is observable (IFRS 13).","es":""}},{"id":"D","text":{"fr":"","en":"The whole yield curve, because management restated it","es":""},"correct":false,"feedback":{"fr":"","en":"A restatement must be assessed for its extent; no restatement is mentioned in the case (IFRS 13).","es":""}}],"id":"P1","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"Can the 6% discount for position size be used?","es":""},"explanation":{"fr":"","en":"No blockage discount is permitted (IFRS 13, para. 69).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No: a discount related to the size of the position is not permitted","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Yes, if management documents it","es":""},"correct":false,"feedback":{"fr":"","en":"Documentation does not make a prohibited discount permitted (IFRS 13, para. 69).","es":""}}],"id":"P2","dimension":"ANALYSIS"},{"prompt":{"fr":"","en":"Calculate the fair value of the 5,000 securities at the bid.","es":""},"explanation":{"fr":"","en":"5,000 × 50.00 = 250,000, with no size discount. Rule to remember: the most representative price in the range, multiplied by the quantity, with no size discount (IFRS 13, paras. 69 and 70).","es":""},"common_error":{"fr":"","en":"Applying a blockage discount: fair value is price times quantity, without a size discount.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Bid price","es":""},"value":"50.00","unit":"EUR"},{"label":{"fr":"","en":"Securities","es":""},"value":"5000","unit":"UNITS"}],"steps":[{"id":"S1","label":{"fr":"","en":"Fair value","es":""},"answer":250000,"tolerance":0,"unit":"EUR"}],"id":"P3","dimension":"CALCULATION","formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Fair value","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Securities","es":""},"value":5000,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Bid price","es":""},"value":50,"unit":"EUR"}],"result":250000,"unit":"EUR"}],"rationale":{"fr":"","en":"the most representative price in the range, multiplied by the quantity, with no size discount (IFRS 13, paras. 69 and 70).","es":""},"references":["REF.IFRS13.69","REF.IFRS13.70"]}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000098","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.HIERARCHY.LEVEL_1"],"dimension":"RULE_KNOWLEDGE","format":"MULTIPLE_CHOICE","context":"GENERIC","tested_point":"LEVEL1_IDENTIFY","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IFRS13.000011","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000011","section_id":"rule-levels"},"references":["IFRS 13 §76"],"exercise":{"prompt":{"fr":"","en":"Which conditions characterise a Level 1 input? (more than one)","es":""},"explanation":{"fr":"","en":"Level 1: unadjusted quoted prices, active markets, identical items, access at the measurement date (IFRS 13).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Active market","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Identical asset or liability, accessible at the measurement date","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Price of a merely similar item corrected by a model","es":""},"correct":false,"feedback":{"fr":"","en":"A similar item falls under Level 2, not Level 1, which requires identical items (IFRS 13, para. 82).","es":""}},{"id":"D","text":{"fr":"","en":"Unadjusted quoted price","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000099","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.HIERARCHY.LEVEL_2"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"BANKING","tested_point":"LEVELS_CLASSIFY_INPUTS","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS13.000011","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000011","section_id":"rule-levels"},"references":["IFRS 13 §82"],"exercise":{"prompt":{"fr":"","en":"Classify each input by its level.","es":""},"explanation":{"fr":"","en":"Level 1: identical quoted prices (IFRS 13); Level 2: similar items, inactive markets, rates, volatilities (IFRS 13, para. 82); Level 3: unobservable. Rule to remember: classify the input before classifying the measurement.","es":""},"common_error":{"fr":"","en":"Classifying an inactive market price at Level 1.","es":""},"format":"CLASSIFICATION","categories":[{"id":"L1","text":{"fr":"","en":"Level 1","es":""}},{"id":"L2","text":{"fr":"","en":"Level 2","es":""}},{"id":"L3","text":{"fr":"","en":"Level 3","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Unadjusted closing price of a share quoted in an active market","es":""},"category":"L1"},{"id":"I2","text":{"fr":"","en":"Quoted price of a similar bond","es":""},"category":"L2"},{"id":"I3","text":{"fr":"","en":"Implied volatility derived from observed option prices","es":""},"category":"L2"},{"id":"I4","text":{"fr":"","en":"Internal cash flow forecast of a start-up with no comparable","es":""},"category":"L3"},{"id":"I5","text":{"fr":"","en":"Prices of transactions in a market that has become inactive","es":""},"category":"L2"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000100","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.HIERARCHY.LOWEST_LEVEL_INPUT"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"LOWEST_LEVEL_RULE","difficulty":"INTERMEDIATE","estimated_time_s":45,"lesson_id":"LS.IFRS13.000011","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000011","section_id":"rule-lowest"},"references":["IFRS 13 §73"],"exercise":{"prompt":{"fr":"","en":"A model uses five Level 2 inputs and one significant unobservable input. At which level is the measurement classified?","es":""},"explanation":{"fr":"","en":"The measurement takes the level of the lowest significant input (IFRS 13).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Level 3","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Level 2, because most inputs are there","es":""},"correct":false,"feedback":{"fr":"","en":"Classification follows the lowest-level significant input, not the majority (IFRS 13).","es":""}},{"id":"C","text":{"fr":"","en":"Level 1, because one input is quoted","es":""},"correct":false,"feedback":{"fr":"","en":"A Level 1 input does not make the measurement Level 1 if a lower input is significant (IFRS 13).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000101","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.HIERARCHY.BLOCKAGE_FACTOR"],"dimension":"CALCULATION","format":"CALCULATION","context":"FINANCE","tested_point":"BLOCKAGE_CALC","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IFRS13.000011","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000011","section_id":"numeric"},"references":["IFRS 13 §80"],"exercise":{"prompt":{"fr":"","en":"Participations Lorvane holds 1,000,000 shares quoted in an active market, price €8.40; daily volume is 50,000 shares. Calculate the position's fair value, then the difference from an erroneous measurement applying a 6% blockage discount.","es":""},"explanation":{"fr":"","en":"1,000,000 × 8.40 = 8,400,000; × 94% = 7,896,000; difference 504,000. Rule to remember: quoted price × quantity held, even if the quantity exceeds daily volume (IFRS 13, para. 80).","es":""},"common_error":{"fr":"","en":"Applying a liquidity discount to a large position.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Shares held","es":""},"value":"1000000","unit":"UNITS"},{"label":{"fr":"","en":"Quoted price","es":""},"value":"8.40","unit":"EUR"},{"label":{"fr":"","en":"Erroneous discount","es":""},"value":"6","unit":"PERCENT"}],"steps":[{"id":"S1","label":{"fr":"","en":"Fair value of the position","es":""},"answer":8400000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Erroneous value after discount","es":""},"answer":7896000,"tolerance":0,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Difference (understatement)","es":""},"answer":504000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Fair value of the position","es":""},"expression":"a * b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Shares held","es":""},"value":1000000,"unit":"UNITS"},{"symbol":"b","meaning":{"fr":"","en":"Quoted price","es":""},"value":8.4,"unit":"EUR"}],"result":8400000,"unit":"EUR"}],"rationale":{"fr":"","en":"quoted price × quantity held, even if the quantity exceeds daily volume (IFRS 13, para. 80).","es":""},"references":["REF.IFRS13.80"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000102","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.HIERARCHY.LEVEL_1"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"FINANCE","tested_point":"LEVEL1_UNADJUSTED_PRICE","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IFRS13.000011","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000011","section_id":"rule-level1"},"references":["IFRS 13 §77","IFRS 13 §79"],"exercise":{"prompt":{"fr":"","en":"An entity holds an asset quoted in an active market. Outside the exceptions set out in the standard, how does it treat the quoted price of that asset?","es":""},"explanation":{"fr":"","en":"A quoted price in an active market is used without adjustment, except in the exceptions set out in the standard (IFRS 13, paras. 77 and 79).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It uses it without adjustment","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It adjusts it according to its own estimate of the asset's value","es":""},"correct":false,"feedback":{"fr":"","en":"A quoted price in an active market is used without adjustment, except in the exceptions set out in the standard; the entity's own estimate is not one of them (IFRS 13, paras. 77 and 79).","es":""}},{"id":"C","text":{"fr":"","en":"It systematically replaces it with a present value","es":""},"correct":false,"feedback":{"fr":"","en":"A quoted price in an active market is the best indication of fair value: it is not replaced by a present value technique (IFRS 13, para. 77).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000103","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.HIERARCHY.LEVEL_2"],"dimension":"ANALYSIS","format":"SINGLE_CHOICE","context":"REAL_ESTATE","tested_point":"LEVEL2_ADJUSTMENT","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IFRS13.000011","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000011","section_id":"rule-level23"},"references":["IFRS 13 §83","IFRS 13 §84","IFRS 13 §85"],"exercise":{"prompt":{"fr":"","en":"A Level 2 price is adjusted by 2% for the asset's condition using market data. Then a second 35% adjustment, based on an unobservable input, becomes significant. Which level?","es":""},"explanation":{"fr":"","en":"A significant unobservable adjustment tips the measurement into Level 3 (IFRS 13).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Level 2, an adjustment never changes the level","es":""},"correct":false,"feedback":{"fr":"","en":"A significant unobservable adjustment may move the measurement to Level 3 (IFRS 13).","es":""}},{"id":"B","text":{"fr":"","en":"Level 3","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Level 1, because the starting price is a market price","es":""},"correct":false,"feedback":{"fr":"","en":"The starting point is Level 2; it does not go back up to Level 1 (IFRS 13, para. 81).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000104","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.HIERARCHY.LEVEL_3"],"dimension":"RULE_KNOWLEDGE","format":"MULTIPLE_CHOICE","context":"TECH","tested_point":"LEVEL3_DEVELOP","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS13.000011","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000011","section_id":"rule-level23"},"references":["IFRS 13 §89","IFRS 13 §90"],"exercise":{"prompt":{"fr":"","en":"Which statements about developing Level 3 inputs are correct? (more than one)","es":""},"explanation":{"fr":"","en":"Level 3: best information available, own data adjusted if needed, no exhaustive search (IFRS 13).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It must conduct an exhaustive search of all market assumptions","es":""},"correct":false,"feedback":{"fr":"","en":"No exhaustive search is required, but reasonably available information cannot be ignored (IFRS 13).","es":""}},{"id":"B","text":{"fr":"","en":"The entity uses the best information available","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Its own data may be used if adjusted where they differ from participants'","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It cannot ignore information reasonably available","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000105","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.HIERARCHY.TRANSFERS"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"PHARMA","tested_point":"TRANSFER_POLICY","difficulty":"BEGINNER","estimated_time_s":30,"lesson_id":"LS.IFRS13.000011","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000011","section_id":"rule-level23"},"references":["IFRS 13 §95"],"exercise":{"prompt":{"fr":"","en":"The entity must apply consistently its policy for determining when transfers between levels occur.","es":""},"explanation":{"fr":"","en":"Rule to remember: a policy disclosed and applied consistently (IFRS 13).","es":""},"common_error":{"fr":"","en":"Setting the transfer date case by case.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000106","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.HIERARCHY.LOWEST_LEVEL_INPUT"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MULTIPLE_CHOICE","context":"FINANCE","tested_point":"SIGNIFICANCE_JUSTIFY","difficulty":"ADVANCED","estimated_time_s":60,"lesson_id":"LS.IFRS13.000011","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000011","section_id":"judgment"},"references":["IFRS 13 §73","IFRS 13 §74"],"exercise":{"prompt":{"fr":"","en":"Which elements help justify that an unobservable input is significant? (more than one)","es":""},"explanation":{"fr":"","en":"Professional judgment: significance is demonstrated by effect and sensitivity (IFRS 13).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Management's mere wish to remain at Level 2","es":""},"correct":false,"feedback":{"fr":"","en":"Significance is assessed on facts, not on the level desired (IFRS 13).","es":""}},{"id":"B","text":{"fr":"","en":"The effect of the input on the measurement result","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The sensitivity of the measurement to a change in the input","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000107","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.HIERARCHY.LOWEST_LEVEL_INPUT"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"FINANCE","tested_point":"HIERARCHY_MINI_CASE","difficulty":"EXPERT","estimated_time_s":240,"lesson_id":"LS.IFRS13.000011","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000011","section_id":"judgment"},"references":["IFRS 13 §73","IFRS 13 §74","IFRS 13 §83","IFRS 13 §85"],"exercise":{"prompt":{"fr":"","en":"Classify the measurement of an instrument of the fictitious company Obligations Tessane.","es":""},"explanation":{"fr":"","en":"Rule to remember: the level follows the lowest significant input (IFRS 13).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Obligations Tessane (fictitious) values an unlisted instrument by discounting. Case data: the risk-free yield curve is observable (Level 2); the issuer's credit spread is an internal estimate with no market comparable (unobservable); if this spread changes by 100 basis points, fair value changes by 12% (teaching assumption: the input is judged significant).","es":""},"exhibits":[],"parts":[{"prompt":{"fr":"","en":"At which level is the fair value classified?","es":""},"explanation":{"fr":"","en":"A significant unobservable input classifies the entire measurement at Level 3 (IFRS 13).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Level 3, because the lowest significant unobservable input prevails","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Level 2, because the yield curve is observable","es":""},"correct":false,"feedback":{"fr":"","en":"The lowest-level significant input determines the level of the whole measurement (IFRS 13).","es":""}},{"id":"C","text":{"fr":"","en":"Level 1, because the instrument is measured at fair value","es":""},"correct":false,"feedback":{"fr":"","en":"Level 1 requires an unadjusted quoted price for an identical item (IFRS 13).","es":""}}],"id":"P1","dimension":"ANALYSIS"},{"prompt":{"fr":"","en":"Which elements should the file keep to support significance? (more than one)","es":""},"explanation":{"fr":"","en":"Professional judgment: keep the effect, the sensitivity and the absence of market support (IFRS 13).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The 12% sensitivity per 100 basis points","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The absence of a market comparable for the credit spread","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The audit report signing date","es":""},"correct":false,"feedback":{"fr":"","en":"That date has no bearing on the significance of the input (IFRS 13).","es":""}}],"id":"P2","dimension":"PROFESSIONAL_JUDGMENT"},{"prompt":{"fr":"","en":"Level 3 for this instrument entails more extensive disclosures than Level 2.","es":""},"explanation":{"fr":"","en":"Rule to remember: the level used determines the extent of the disclosures, which are richer at Level 3 (IFRS 13, para. 93).","es":""},"common_error":{"fr":"","en":"Giving the same disclosures for Level 3 as for Level 2: Level 3 requires more extensive disclosures.","es":""},"format":"TRUE_FALSE","answer":true,"id":"P3","dimension":"DOCUMENTATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000108","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.INACTIVE.DECREASED_ACTIVITY"],"dimension":"RECOGNITION","format":"MULTIPLE_CHOICE","context":"FINANCE","tested_point":"ACTIVITY_SIGNALS","difficulty":"BEGINNER","estimated_time_s":60,"lesson_id":"LS.IFRS13.000012","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000012","section_id":"rule-decrease"},"references":["IFRS 13"],"exercise":{"prompt":{"fr":"","en":"Which elements may signal a significant decrease in activity (teaching examples)? (more than one)","es":""},"explanation":{"fr":"","en":"Few transactions, wider gaps and little information are signals of reduced activity (IFRS 13).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Markedly wider bid-ask gaps","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Stable price, usual volumes and numerous transactions","es":""},"correct":false,"feedback":{"fr":"","en":"These are signs of a normal active market, not of a decrease in activity (IFRS 13).","es":""}},{"id":"C","text":{"fr":"","en":"Little public information available","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Very few recent transactions","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000109","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.INACTIVE.DECREASED_ACTIVITY"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"FINANCE","tested_point":"DECREASE_CONSEQUENCE","difficulty":"INTERMEDIATE","estimated_time_s":45,"lesson_id":"LS.IFRS13.000012","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000012","section_id":"rule-decrease"},"references":["IFRS 13","IFRS 13 §62"],"exercise":{"prompt":{"fr":"","en":"After a significant decrease in activity, what remains of the objective of the measurement?","es":""},"explanation":{"fr":"","en":"The objective of an orderly transaction price remains despite the decrease in activity (IFRS 13).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Estimate the price of a forced sale","es":""},"correct":false,"feedback":{"fr":"","en":"The objective remains an orderly transaction, not a forced sale (IFRS 13).","es":""}},{"id":"B","text":{"fr":"","en":"Use historical cost","es":""},"correct":false,"feedback":{"fr":"","en":"Historical cost is not a market exit price (IFRS 13).","es":""}},{"id":"C","text":{"fr":"","en":"Estimate the price of an orderly transaction under current market conditions","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000110","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.INACTIVE.DECREASED_ACTIVITY"],"dimension":"APPLICATION","format":"ORDERING","context":"FINANCE","tested_point":"ACTIVITY_STEPS","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS13.000012","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000012","section_id":"rule-decrease"},"references":["IFRS 13"],"exercise":{"prompt":{"fr":"","en":"Put in order the (teaching) approach facing a freezing market.","es":""},"explanation":{"fr":"","en":"Approach: observe, conclude, assess, act, document (IFRS 13). Rule to remember: this order is a teaching approach, not imposed.","es":""},"common_error":{"fr":"","en":"Discarding observed prices without concluding on the decline in activity or assessing their reliability.","es":""},"format":"ORDERING","steps":[{"id":"S1","text":{"fr":"","en":"Look for signals of decreased activity","es":""}},{"id":"S2","text":{"fr":"","en":"Conclude on the significance of the decrease","es":""}},{"id":"S3","text":{"fr":"","en":"Assess the reliability of observed prices","es":""}},{"id":"S4","text":{"fr":"","en":"Use, if needed, a technique or weighting","es":""}},{"id":"S5","text":{"fr":"","en":"Document the conclusion and its effects on the level","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000111","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.INACTIVE.NOT_ORDERLY"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"LOW_PRICE_NOT_ENOUGH","difficulty":"BEGINNER","estimated_time_s":30,"lesson_id":"LS.IFRS13.000012","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000012","section_id":"rule-orderly"},"references":["IFRS 13 §B43","IFRS 13 §B44"],"exercise":{"prompt":{"fr":"","en":"A non-orderly transaction must receive an appropriate weighting in the measurement.","es":""},"explanation":{"fr":"","en":"Rule to remember: the price of a non-orderly transaction is not used at full weight (IFRS 13, paras. B43 and B44).","es":""},"common_error":{"fr":"","en":"Treating a forced-sale price as a normal market price.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000112","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.INACTIVE.NOT_ORDERLY"],"dimension":"CALCULATION","format":"CALCULATION","context":"FINANCE","tested_point":"WEIGHTED_NONORDERLY","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IFRS13.000012","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000012","section_id":"numeric"},"references":["IFRS 13 §B43","IFRS 13 §B44","IFRS 13 §63"],"exercise":{"prompt":{"fr":"","en":"Teaching assumption: the last observed price (90) comes from a forced sale judged non-orderly, weighted at 10%; a model with observable inputs gives 100, weighted at 90%. Calculate fair value.","es":""},"explanation":{"fr":"","en":"0.10 × 90 + 0.90 × 100 = 9 + 90 = 99. Rule to remember: the non-orderly price is weighted, neither discarded nor used at full weight (IFRS 13, paras. B43 and B44).","es":""},"common_error":{"fr":"","en":"Using 90 (observed price) or 100 (model alone).","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Last price, weight 10%","es":""},"value":"90","unit":"UNITS"},{"label":{"fr":"","en":"Model, weight 90%","es":""},"value":"100","unit":"UNITS"}],"steps":[{"id":"S1","label":{"fr":"","en":"Weighted fair value","es":""},"answer":99,"tolerance":0,"unit":"UNITS"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Weighted fair value","es":""},"expression":"9 + a","variables":[{"symbol":"a","meaning":{"fr":"","en":"Last price, weight 10%","es":""},"value":90,"unit":"UNITS"}],"result":99,"unit":"UNITS"}],"rationale":{"fr":"","en":"the non-orderly price is weighted, neither discarded nor used at full weight (IFRS 13, paras. B43 and B44).","es":""},"references":["REF.IFRS13.B43","REF.IFRS13.B44"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000113","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.INACTIVE.NOT_ORDERLY"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"FINANCE","tested_point":"NONORDERLY_ERRORS","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IFRS13.000012","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000012","section_id":"pitfalls"},"references":["IFRS 13 §B43","IFRS 13 §B44"],"exercise":{"prompt":{"fr":"","en":"Spot the flawed reasoning about non-orderly transactions.","es":""},"explanation":{"fr":"","en":"Rule to remember: indicators of circumstances, then appropriate weight (IFRS 13, paras. B43 and B44).","es":""},"common_error":{"fr":"","en":"Judging whether a transaction is orderly from price alone.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"Any transaction at a price below average is discarded without further review.","es":""},"erroneous":true,"correction":{"fr":"","en":"Indicators about the circumstances of the transaction are needed, not the price level alone (IFRS 13, para. B43).","es":""}},{"id":"S2","text":{"fr":"","en":"The price of a transaction judged non-orderly receives a reduced weight.","es":""},"erroneous":false},{"id":"S3","text":{"fr":"","en":"A non-orderly transaction is used at full weight as soon as it is recent.","es":""},"erroneous":true,"correction":{"fr":"","en":"Being recent does not make a non-orderly transaction orderly; its price receives an appropriate weight (IFRS 13, paras. B43 and B44).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000114","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.INACTIVE.DECREASED_ACTIVITY"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"FINANCE","tested_point":"FROZEN_MARKET_MINI_CASE","difficulty":"EXPERT","estimated_time_s":240,"lesson_id":"LS.IFRS13.000012","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000012","section_id":"judgment"},"references":["IFRS 13","IFRS 13 §B43","IFRS 13 §B44","IFRS 13 §63","IFRS 13 §75"],"exercise":{"prompt":{"fr":"","en":"Analyse the Fonds Maldane (fictitious) bond measurement in a frozen market.","es":""},"explanation":{"fr":"","en":"Rule to remember: assess activity, weight the non-orderly price, document (IFRS 13, para. B43).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Fonds Maldane (fictitious) measures bonds. Case data: only 3 transactions in two months against 80 in normal times; bid-ask gaps multiplied by 6; the last transaction (price 90) is a forced sale by a fund in liquidation; a discounting model with observable inputs gives 100. The director proposes to use 90, 'the only market price'.","es":""},"exhibits":[],"parts":[{"prompt":{"fr":"","en":"What do the case facts reveal?","es":""},"explanation":{"fr":"","en":"The facts signal decreased activity and a non-orderly transaction (IFRS 13, para. B43).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A significant decrease in activity and a probably non-orderly transaction","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"A normal active market","es":""},"correct":false,"feedback":{"fr":"","en":"3 transactions against 80 and gaps multiplied by 6 signal on the contrary a decrease in activity (IFRS 13).","es":""}},{"id":"C","text":{"fr":"","en":"No indication at all about the circumstances of the sale","es":""},"correct":false,"feedback":{"fr":"","en":"A forced sale by a fund in liquidation is an indicator of the circumstances (IFRS 13, para. B43).","es":""}}],"id":"P1","dimension":"ANALYSIS"},{"prompt":{"fr":"","en":"Teaching assumption: 10% weight on the price of 90 and 90% on the model (100). Calculate fair value.","es":""},"explanation":{"fr":"","en":"0.10 × 90 + 0.90 × 100 = 99. Rule to remember: the price of a non-orderly transaction receives little, if any, weight compared with other indications (IFRS 13, para. B44); the 10% weight is a teaching assumption.","es":""},"common_error":{"fr":"","en":"Using the forced-sale price as fair value: a non-orderly transaction receives little or no weight.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Forced sale price / model","es":""},"value":"90 / 100","unit":"TEXT"}],"steps":[{"id":"S1","label":{"fr":"","en":"Fair value","es":""},"answer":99,"tolerance":0,"unit":"UNITS"}],"id":"P2","dimension":"CALCULATION"},{"prompt":{"fr":"","en":"What does the professional answer the director?","es":""},"explanation":{"fr":"","en":"Professional judgment: weight, explain the weights and document the signals and the conclusion (IFRS 13, para. B43).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The price of 90 is one indication among others; it is weighted with the model and the conclusion is documented","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The only observed price always prevails","es":""},"correct":false,"feedback":{"fr":"","en":"A non-orderly transaction price need not be used at full weight (IFRS 13, paras. B43 and B44).","es":""}},{"id":"C","text":{"fr":"","en":"The price of 90 must be ignored entirely","es":""},"correct":false,"feedback":{"fr":"","en":"The standard asks for little, if any, weight: it does not require the price to be disregarded entirely (IFRS 13, para. B44).","es":""}}],"id":"P3","dimension":"PROFESSIONAL_JUDGMENT"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000115","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.DISCLOSURE.OBJECTIVES"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"DISCLOSURE_OBJECTIVE","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IFRS13.000013","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000013","section_id":"understand"},"references":["IFRS 13 §91"],"exercise":{"prompt":{"fr":"","en":"What are IFRS 13 disclosures mainly for?","es":""},"explanation":{"fr":"","en":"The objectives concern techniques, inputs and the effect of recurring Level 3 measurements (IFRS 13, para. 91).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"To let users assess the techniques and inputs used and the effect of recurring Level 3 measurements","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"To justify the principal market choice to the regulator","es":""},"correct":false,"feedback":{"fr":"","en":"The aim is to inform users about techniques and inputs, not to justify a choice to a third party (IFRS 13, para. 91).","es":""}},{"id":"C","text":{"fr":"","en":"To replace measurement with a footnote","es":""},"correct":false,"feedback":{"fr":"","en":"Disclosures complement the measurement without replacing it (IFRS 13, para. 91).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000116","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.DISCLOSURE.LEVEL_TABLE"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"GENERIC","tested_point":"WHICH_DISCLOSURE_WHICH_LEVEL","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS13.000013","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000013","section_id":"rule-content"},"references":["IFRS 13 §93","IFRS 13 §94"],"exercise":{"prompt":{"fr":"","en":"Classify each disclosure by the levels concerned.","es":""},"explanation":{"fr":"","en":"Period end and level: all; techniques and inputs: Levels 2 and 3; reconciliation and sensitivity: recurring Level 3 measurements (IFRS 13, para. 93). Rule to remember: the lower the level, the richer the disclosure, with reconciliation and sensitivity concerning recurring Level 3 measurements.","es":""},"common_error":{"fr":"","en":"Requiring sensitivity for all levels.","es":""},"format":"CLASSIFICATION","categories":[{"id":"ALL","text":{"fr":"","en":"All levels","es":""}},{"id":"L23","text":{"fr":"","en":"Levels 2 and 3","es":""}},{"id":"L3","text":{"fr":"","en":"Recurring Level 3 measurements only","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Fair value at period end and hierarchy level","es":""},"category":"ALL"},{"id":"I2","text":{"fr":"","en":"Valuation techniques and inputs used","es":""},"category":"L23"},{"id":"I3","text":{"fr":"","en":"Reconciliation of opening and closing balances","es":""},"category":"L3"},{"id":"I4","text":{"fr":"","en":"Sensitivity to unobservable inputs","es":""},"category":"L3"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000117","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.DISCLOSURE.LEVEL_TABLE"],"dimension":"CALCULATION","format":"CALCULATION","context":"FINANCE","tested_point":"LEVEL_TABLE_TOTALS","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IFRS13.000013","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000013","section_id":"numeric"},"references":["IFRS 13 §93","IFRS 13 §94"],"exercise":{"prompt":{"fr":"","en":"Holding Ardane: quoted shares (Level 1) €1,200,000, interest rate derivatives (Level 2) €800,000, unlisted holdings (Level 3) €2,550,000. Calculate totals by level and the grand total.","es":""},"explanation":{"fr":"","en":"1,200,000 + 800,000 = 2,000,000; + 2,550,000 = 4,550,000. Rule to remember: the table by level total must tie to the financial statements total for the same category (IFRS 13, para. 93).","es":""},"common_error":{"fr":"","en":"Mistakenly adding one level twice.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Level 1","es":""},"value":"1200000","unit":"EUR"},{"label":{"fr":"","en":"Level 2","es":""},"value":"800000","unit":"EUR"},{"label":{"fr":"","en":"Level 3","es":""},"value":"2550000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Total Levels 1 and 2","es":""},"answer":2000000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Grand total","es":""},"answer":4550000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Total Levels 1 and 2","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Level 1","es":""},"value":1200000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Level 2","es":""},"value":800000,"unit":"EUR"}],"result":2000000,"unit":"EUR"}],"rationale":{"fr":"","en":"the table by level total must tie to the financial statements total for the same category (IFRS 13, para. 93).","es":""},"references":["REF.IFRS13.93"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000118","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.DISCLOSURE.LEVEL3_RECONCILIATION"],"dimension":"CALCULATION","format":"CALCULATION","context":"FINANCE","tested_point":"LEVEL3_RECONCILIATION_CALC","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IFRS13.000013","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000013","section_id":"numeric"},"references":["IFRS 13 §93"],"exercise":{"prompt":{"fr":"","en":"Recurring Level 3 measurements: opening €2,400,000; purchases +300,000; sales −250,000; gains in profit or loss +150,000; gains in other comprehensive income +50,000; transfers into Level 3 +100,000; transfers out of Level 3 −200,000. Calculate the closing balance and the net change.","es":""},"explanation":{"fr":"","en":"300,000 − 250,000 + 150,000 + 50,000 + 100,000 − 200,000 = 150,000; 2,400,000 + 150,000 = 2,550,000. Rule to remember: opening + movements = closing (IFRS 13, para. 93).","es":""},"common_error":{"fr":"","en":"Forgetting to subtract transfers out of Level 3.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Opening balance","es":""},"value":"2400000","unit":"EUR"},{"label":{"fr":"","en":"Period movements (net)","es":""},"value":"150000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Net change","es":""},"answer":150000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Closing balance","es":""},"answer":2550000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S2","meaning":{"fr":"","en":"Closing balance","es":""},"expression":"a + b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Opening balance","es":""},"value":2400000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Period movements (net)","es":""},"value":150000,"unit":"EUR"}],"result":2550000,"unit":"EUR"}],"rationale":{"fr":"","en":"opening + movements = closing (IFRS 13, para. 93).","es":""},"references":["REF.IFRS13.93"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000119","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.DISCLOSURE.VALUATION_TECHNIQUES_INPUTS"],"dimension":"RULE_KNOWLEDGE","format":"MATCHING","context":"GENERIC","tested_point":"MATCH_DISCLOSURE","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS13.000013","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000013","section_id":"rule-content"},"references":["IFRS 13 §93","IFRS 13 §97"],"exercise":{"prompt":{"fr":"","en":"Match each situation with the disclosure to provide.","es":""},"explanation":{"fr":"","en":"Rule to remember: the level determines the disclosure; an item whose fair value is only disclosed still requires the level to be stated (IFRS 13, paras. 93 and 97).","es":""},"common_error":{"fr":"","en":"Leaving out an amortised-cost item whose fair value is disclosed: its level must be stated.","es":""},"format":"MATCHING","left":[{"id":"L1","text":{"fr":"","en":"Level 3 instrument measured on a recurring basis","es":""}},{"id":"L2","text":{"fr":"","en":"Level 2 instrument","es":""}},{"id":"L3","text":{"fr":"","en":"Amortised cost borrowing whose fair value is disclosed","es":""}}],"right":[{"id":"R2","text":{"fr":"","en":"Techniques and inputs used","es":""}},{"id":"R1","text":{"fr":"","en":"Reconciliation, effect on profit or loss and sensitivity","es":""}},{"id":"R4","text":{"fr":"","en":"No disclosure","es":""}},{"id":"R3","text":{"fr":"","en":"Hierarchy level and, for Levels 2 and 3, techniques and inputs","es":""}}],"pairs":[{"left":"L1","right":"R1"},{"left":"L2","right":"R2"},{"left":"L3","right":"R3"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000120","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.DISCLOSURE.NOT_AT_FAIR_VALUE"],"dimension":"APPLICATION","format":"SINGLE_CHOICE","context":"BANKING","tested_point":"NOT_AT_FV_DISCLOSURE","difficulty":"INTERMEDIATE","estimated_time_s":45,"lesson_id":"LS.IFRS13.000013","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000013","section_id":"rule-other"},"references":["IFRS 13 §97"],"exercise":{"prompt":{"fr":"","en":"A debt measured at amortised cost has its fair value disclosed in the notes; it is Level 2. What must be stated?","es":""},"explanation":{"fr":"","en":"Level, then techniques and inputs for Levels 2 and 3 (IFRS 13, para. 97).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Nothing, since the debt is not measured at fair value","es":""},"correct":false,"feedback":{"fr":"","en":"For items whose fair value is disclosed, the level and, for Levels 2 and 3, the techniques and inputs must be stated (IFRS 13, para. 97).","es":""}},{"id":"B","text":{"fr":"","en":"Only the Level 3 reconciliation","es":""},"correct":false,"feedback":{"fr":"","en":"The reconciliation concerns Level 3, not this Level 2 case (IFRS 13, para. 93).","es":""}},{"id":"C","text":{"fr":"","en":"The hierarchy level and the techniques and inputs used","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000121","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.DISCLOSURE.TABULAR_FORMAT"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"TABULAR_FORMAT","difficulty":"BEGINNER","estimated_time_s":30,"lesson_id":"LS.IFRS13.000013","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000013","section_id":"rule-content"},"references":["IFRS 13 §99"],"exercise":{"prompt":{"fr":"","en":"Quantitative disclosures are presented in tabular format, unless another format is more appropriate.","es":""},"explanation":{"fr":"","en":"Rule to remember: tabular by default, another format if more appropriate (IFRS 13).","es":""},"common_error":{"fr":"","en":"Imposing a table in every case without exception.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000122","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.DISCLOSURE.LIABILITY_CREDIT_ENHANCEMENT"],"dimension":"RECOGNITION","format":"FILL_BLANK","context":"BANKING","tested_point":"CREDIT_ENHANCEMENT_FILL","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS13.000013","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000013","section_id":"rule-other"},"references":["IFRS 13 §98"],"exercise":{"prompt":{"fr":"","en":"Complete the sentence.","es":""},"explanation":{"fr":"","en":"Rule to remember: existence of the enhancement and whether it is reflected in the measurement (IFRS 13).","es":""},"common_error":{"fr":"","en":"Disclosing the cost of the credit enhancement or assuming it is never reflected: disclose its existence and whether it is reflected.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"For a liability issued with an inseparable credit enhancement, the entity states the {{quoi}} of the enhancement and {{quoi2}} in the measurement.","es":""},"blanks":[{"id":"quoi","mode":"CHOICE","choices":[{"id":"EXIST","text":{"fr":"","en":"existence","es":""}},{"id":"COST","text":{"fr":"","en":"cost","es":""}}],"answer":"EXIST"},{"id":"quoi2","mode":"CHOICE","choices":[{"id":"REFL","text":{"fr":"","en":"whether it is reflected","es":""}},{"id":"NEVER","text":{"fr":"","en":"that it is never reflected","es":""}}],"answer":"REFL"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000123","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.DISCLOSURE.LEVEL3_SENSITIVITY"],"dimension":"RULE_KNOWLEDGE","format":"MULTIPLE_CHOICE","context":"PHARMA","tested_point":"LEVEL3_SENSITIVITY_MC","difficulty":"ADVANCED","estimated_time_s":60,"lesson_id":"LS.IFRS13.000013","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000013","section_id":"rule-level3"},"references":["IFRS 13 §93"],"exercise":{"prompt":{"fr":"","en":"Which disclosures specific to recurring Level 3 measurements does the entity provide? (more than one)","es":""},"explanation":{"fr":"","en":"Recurring Level 3 measurements: reconciliation and sensitivity; valuation process to be described (IFRS 13, para. 93).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The named list of potential buyers","es":""},"correct":false,"feedback":{"fr":"","en":"No list of buyers is required; participants are described by their characteristics (IFRS 13, para. 93).","es":""}},{"id":"B","text":{"fr":"","en":"A reconciliation from opening to closing balance","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The valuation process","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Sensitivity to unobservable inputs","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000124","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.DISCLOSURE.LEVEL3_RECONCILIATION"],"dimension":"ANALYSIS","format":"ERROR_SPOT","context":"FINANCE","tested_point":"RECONCILIATION_ERRORS","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IFRS13.000013","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000013","section_id":"pitfalls"},"references":["IFRS 13 §93"],"exercise":{"prompt":{"fr":"","en":"Spot the errors in a draft fair value note.","es":""},"explanation":{"fr":"","en":"Rule to remember: by category and by level, with a reconciliation that ties to the closing balance (IFRS 13, para. 93).","es":""},"common_error":{"fr":"","en":"Providing a single total without categories or consistency between tables.","es":""},"format":"ERROR_SPOT","statements":[{"id":"S1","text":{"fr":"","en":"The Level 3 reconciliation gives a closing balance of €2,600,000 whereas the table by level shows €2,550,000.","es":""},"erroneous":true,"correction":{"fr":"","en":"The reconciliation must tie to the closing balance in the table by level; the €50,000 difference must be investigated (IFRS 13, para. 93).","es":""}},{"id":"S2","text":{"fr":"","en":"Techniques and inputs are stated for Level 2 and 3 measurements.","es":""},"erroneous":false},{"id":"S3","text":{"fr":"","en":"Disclosures are given for all instruments in a single total, without categories.","es":""},"erroneous":true,"correction":{"fr":"","en":"Disclosures are provided by category, determined by nature, characteristics, risks and level (IFRS 13).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000125","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.DISCLOSURE.OBJECTIVES"],"dimension":"PROFESSIONAL_JUDGMENT","format":"SINGLE_CHOICE","context":"FINANCE","tested_point":"AGGREGATION_JUDGMENT","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IFRS13.000013","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000013","section_id":"judgment"},"references":["IFRS 13 §92","IFRS 13 §94"],"exercise":{"prompt":{"fr":"","en":"An entity groups government bonds and unlisted holdings in a single category. What must it assess?","es":""},"explanation":{"fr":"","en":"Professional judgment: categories and aggregation serving the disclosure objectives (IFRS 13, para. 92).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Only whether the total is below a threshold set by the standard","es":""},"correct":false,"feedback":{"fr":"","en":"The standard asks for a judgment on detail and aggregation, not a mechanical threshold (IFRS 13, para. 92).","es":""}},{"id":"B","text":{"fr":"","en":"Whether the category reflects nature, characteristics, risks and level, and whether the aggregation serves the objectives","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Nothing: categories are set by the chart of accounts","es":""},"correct":false,"feedback":{"fr":"","en":"Categories are determined by nature, characteristics, risks and level (IFRS 13).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000126","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.DISCLOSURE.LEVEL3_RECONCILIATION"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"FINANCE","tested_point":"DISCLOSURE_MINI_CASE","difficulty":"EXPERT","estimated_time_s":240,"lesson_id":"LS.IFRS13.000013","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000013","section_id":"judgment"},"references":["IFRS 13 §93"],"exercise":{"prompt":{"fr":"","en":"Prepare the Level 3 note of the fictitious company Investissements Lorane.","es":""},"explanation":{"fr":"","en":"Rule to remember: consistent reconciliation, sensitivity provided, detail suited to the objectives (IFRS 13, paras. 92 and 93).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Investissements Lorane (fictitious) holds unlisted holdings measured on a recurring basis at Level 3. Case data: opening balance €1,800,000; purchases €400,000; sales €150,000; gains in profit or loss €120,000; transfers into Level 3 €80,000; no other movement. The closing table by level shows €2,250,000 for this category. The finance director proposes not to provide sensitivity because 'the unobservable input is confidential'.","es":""},"exhibits":[],"parts":[{"prompt":{"fr":"","en":"Calculate the closing balance of the reconciliation.","es":""},"explanation":{"fr":"","en":"1,800,000 + 400,000 − 150,000 + 120,000 + 80,000 = 2,250,000. Rule to remember: opening + movements = closing (IFRS 13, para. 93).","es":""},"common_error":{"fr":"","en":"Adding disposals or forgetting transfers into Level 3: opening plus movements must equal closing.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Opening","es":""},"value":"1800000","unit":"EUR"},{"label":{"fr":"","en":"Purchases / sales","es":""},"value":"400000 / 150000","unit":"TEXT"},{"label":{"fr":"","en":"Gains in P&L / transfers into Level 3","es":""},"value":"120000 / 80000","unit":"TEXT"}],"steps":[{"id":"S1","label":{"fr":"","en":"Closing balance","es":""},"answer":2250000,"tolerance":0,"unit":"EUR"}],"id":"P1","dimension":"CALCULATION"},{"prompt":{"fr":"","en":"Is the reconciliation consistent with the table by level?","es":""},"explanation":{"fr":"","en":"The reconciliation must tie to the closing balance in the table by level (IFRS 13, para. 93).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Yes, it ties to €2,250,000","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"No, €100,000 is missing","es":""},"correct":false,"feedback":{"fr":"","en":"The calculation ties exactly to €2,250,000; no difference (IFRS 13, para. 93).","es":""}}],"id":"P2","dimension":"ANALYSIS"},{"prompt":{"fr":"","en":"What does the professional answer on sensitivity?","es":""},"explanation":{"fr":"","en":"Professional judgment: present sensitivity choosing the useful level of detail without dropping it (IFRS 13, paras. 92 and 93).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Sensitivity to unobservable inputs is part of the disclosures for recurring Level 3 measurements; confidentiality does not remove it by itself","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Sensitivity is optional as soon as the input is confidential","es":""},"correct":false,"feedback":{"fr":"","en":"The rule as stated provides no such exemption; a recurring Level 3 measurement calls for sensitivity (IFRS 13, para. 93).","es":""}},{"id":"C","text":{"fr":"","en":"Sensitivity is required only for Level 2","es":""},"correct":false,"feedback":{"fr":"","en":"Sensitivity to unobservable inputs concerns Level 3 (IFRS 13, para. 93).","es":""}}],"id":"P3","dimension":"PROFESSIONAL_JUDGMENT"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000127","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.TRANSITION.EFFECTIVE_DATE"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"EFFECTIVE_DATE","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IFRS13.000014","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000014","section_id":"rule"},"references":["IFRS 13 §C1"],"exercise":{"prompt":{"fr":"","en":"From which periods does IFRS 13 apply (effective date)?","es":""},"explanation":{"fr":"","en":"Periods beginning on or after 1 January 2013 (IFRS 13, para. C1).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Annual periods beginning on or after 1 January 2013","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Annual periods ending on or after 1 January 2013","es":""},"correct":false,"feedback":{"fr":"","en":"The date refers to periods beginning on or after 1 January 2013, not periods ending (IFRS 13, para. C1).","es":""}},{"id":"C","text":{"fr":"","en":"Only from 2020","es":""},"correct":false,"feedback":{"fr":"","en":"The effective date is 1 January 2013 (IFRS 13, para. C1).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000128","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.TRANSITION.EFFECTIVE_DATE"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"GENERIC","tested_point":"EARLY_APPLICATION","difficulty":"BEGINNER","estimated_time_s":30,"lesson_id":"LS.IFRS13.000014","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000014","section_id":"rule"},"references":["IFRS 13 §C1"],"exercise":{"prompt":{"fr":"","en":"Early application of IFRS 13 is permitted, with disclosure of that fact.","es":""},"explanation":{"fr":"","en":"Rule to remember: early application permitted, with disclosure of that fact (IFRS 13, para. C1).","es":""},"common_error":{"fr":"","en":"Believing early application was prohibited or silent.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000129","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.TRANSITION.PROSPECTIVE_APPLICATION"],"dimension":"RECOGNITION","format":"FILL_BLANK","context":"GENERIC","tested_point":"COMPARATIVE_DISCLOSURES","difficulty":"INTERMEDIATE","estimated_time_s":60,"lesson_id":"LS.IFRS13.000014","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000014","section_id":"rule"},"references":["IFRS 13 §C3"],"exercise":{"prompt":{"fr":"","en":"Complete the sentence.","es":""},"explanation":{"fr":"","en":"Rule to remember: no IFRS 13 disclosures for comparatives before first application (IFRS 13, para. C3).","es":""},"common_error":{"fr":"","en":"Applying IFRS 13 disclosures to comparatives before initial application: they are not required there.","es":""},"format":"FILL_BLANK","text":{"fr":"","en":"The disclosures {{regle}} be applied to comparative information {{periode}} first application.","es":""},"blanks":[{"id":"regle","mode":"CHOICE","choices":[{"id":"NOT","text":{"fr":"","en":"need not","es":""}},{"id":"MUST","text":{"fr":"","en":"must","es":""}}],"answer":"NOT"},{"id":"periode","mode":"CHOICE","choices":[{"id":"BEFORE","text":{"fr":"","en":"for periods before","es":""}},{"id":"AFTER","text":{"fr":"","en":"for periods after","es":""}}],"answer":"BEFORE"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000132","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.TRANSITION.EFFECTIVE_DATE"],"dimension":"APPLICATION","format":"MINI_CASE","context":"GENERIC","tested_point":"TRANSITION_MINI_CASE","difficulty":"ADVANCED","estimated_time_s":240,"lesson_id":"LS.IFRS13.000014","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000014","section_id":"example"},"references":["IFRS 13 §C1","IFRS 13 §C3"],"exercise":{"prompt":{"fr":"","en":"Place in time the first application of IFRS 13 by the fictitious company Verrerie Montane.","es":""},"explanation":{"fr":"","en":"Rule to remember: first application period = period beginning on the effective date; prospective; earlier comparatives exempt from disclosures (IFRS 13, paras. C1 and C3).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Verrerie Montane (fictitious) has a 31 December year end. Case data: it applies IFRS 13 for the first time in the accounts for the period beginning 1 January 2013; it presents a comparative for 2012. An adviser suggests also providing IFRS 13 disclosures for 2012 'for consistency'.","es":""},"exhibits":[],"parts":[{"prompt":{"fr":"","en":"Which period is the first application period?","es":""},"explanation":{"fr":"","en":"The period beginning on the effective date, here 2013 (IFRS 13, para. C1).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The period beginning 1 January 2013","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The 2012 period","es":""},"correct":false,"feedback":{"fr":"","en":"The 2012 comparative precedes first application (IFRS 13, para. C1).","es":""}},{"id":"C","text":{"fr":"","en":"The 2014 period","es":""},"correct":false,"feedback":{"fr":"","en":"The case states that first application takes place in the period beginning 1 January 2013 (IFRS 13, para. C1).","es":""}}],"id":"P1","dimension":"RECOGNITION"},{"prompt":{"fr":"","en":"What does the professional answer the adviser?","es":""},"explanation":{"fr":"","en":"No IFRS 13 disclosures required for earlier comparatives (IFRS 13, para. C3).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IFRS 13 disclosures are not required for 2012; the standard does not require providing them","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"They are mandatory for 2012 as for 2013","es":""},"correct":false,"feedback":{"fr":"","en":"Disclosures need not be applied to comparatives before first application (IFRS 13, para. C3).","es":""}}],"id":"P2","dimension":"ANALYSIS"},{"prompt":{"fr":"","en":"The standard's application to Verrerie Montane is prospective from the start of 2013.","es":""},"explanation":{"fr":"","en":"Rule to remember: prospective application from the start of the first application period (IFRS 13).","es":""},"common_error":{"fr":"","en":"Applying the standard retrospectively: it applies prospectively from the start of the year of initial application.","es":""},"format":"TRUE_FALSE","answer":true,"id":"P3","dimension":"APPLICATION"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000133","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.INTERACTIONS.IAS16_REVALUATION"],"dimension":"RECOGNITION","format":"MATCHING","context":"GENERIC","tested_point":"WHO_DECIDES_IAS16","difficulty":"BEGINNER","estimated_time_s":75,"lesson_id":"LS.IFRS13.000015","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000015","section_id":"understand"},"references":["IFRS 13 §5","IAS 16 §31"],"exercise":{"prompt":{"fr":"","en":"Match each question with the standard that answers it.","es":""},"explanation":{"fr":"","en":"Rule to remember: the item's standard decides the model; IFRS 13 provides fair value.","es":""},"common_error":{"fr":"","en":"Looking to IFRS 13 to know whether the asset may be revalued: IAS 16 decides the model.","es":""},"format":"MATCHING","left":[{"id":"L1","text":{"fr":"","en":"May this item of property, plant and equipment be revalued?","es":""}},{"id":"L2","text":{"fr":"","en":"How is its fair value determined?","es":""}}],"right":[{"id":"R3","text":{"fr":"","en":"IAS 36","es":""}},{"id":"R2","text":{"fr":"","en":"IFRS 13","es":""}},{"id":"R1","text":{"fr":"","en":"IAS 16","es":""}}],"pairs":[{"left":"L1","right":"R1"},{"left":"L2","right":"R2"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000134","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.INTERACTIONS.IAS16_REVALUATION"],"dimension":"CALCULATION","format":"CALCULATION","context":"REAL_ESTATE","tested_point":"REVALUATION_CALC","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IFRS13.000015","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000015","section_id":"numeric"},"references":["IFRS 13 §9","IAS 16 §31","IAS 16 §39"],"exercise":{"prompt":{"fr":"","en":"A warehouse has a cost of €1,500,000 and accumulated depreciation of €500,000. Its fair value under IFRS 13 is €1,200,000 at the revaluation date. Calculate the carrying amount before revaluation and the increase (teaching assumption: no earlier decrease in profit or loss).","es":""},"explanation":{"fr":"","en":"1,500,000 − 500,000 = 1,000,000; 1,200,000 − 1,000,000 = 200,000. Rule to remember: IFRS 13 fair value is compared with the carrying amount; the treatment of the difference follows IAS 16.","es":""},"common_error":{"fr":"","en":"Comparing fair value with cost (difference of −300,000).","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Cost","es":""},"value":"1500000","unit":"EUR"},{"label":{"fr":"","en":"Accumulated depreciation","es":""},"value":"500000","unit":"EUR"},{"label":{"fr":"","en":"Fair value (IFRS 13)","es":""},"value":"1200000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Carrying amount before revaluation","es":""},"answer":1000000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Revaluation increase","es":""},"answer":200000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Carrying amount before revaluation","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cost","es":""},"value":1500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Accumulated depreciation","es":""},"value":500000,"unit":"EUR"}],"result":1000000,"unit":"EUR"},{"step":"S2","meaning":{"fr":"","en":"Revaluation increase","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value (IFRS 13)","es":""},"value":1200000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Carrying amount before revaluation","es":""},"value":1000000,"unit":"EUR"}],"result":200000,"unit":"EUR"}],"rationale":{"fr":"","en":"IFRS 13 fair value is compared with the carrying amount; the treatment of the difference follows IAS 16.","es":""},"references":["REF.IFRS13.9","REF.IAS16.31","REF.IAS16.39"]}},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000135","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.INTERACTIONS.IAS16_REVALUATION"],"dimension":"JOURNAL_ENTRY","format":"JOURNAL_ENTRY","context":"REAL_ESTATE","tested_point":"REVALUATION_ENTRY","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IFRS13.000015","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000015","section_id":"entry"},"references":["IFRS 13 §9","IAS 16 §31","IAS 16 §39"],"exercise":{"prompt":{"fr":"","en":"Case convention: the €200,000 increase is added to the warehouse's net carrying amount; no earlier decrease in profit or loss. Record the revaluation.","es":""},"explanation":{"fr":"","en":"Debit the asset, credit the revaluation surplus in other comprehensive income; balance 200,000 = 200,000. Rule to remember: an increase goes to other comprehensive income, unless it reverses an earlier decrease in profit or loss (IAS 16).","es":""},"common_error":{"fr":"","en":"Recording the increase in profit or loss.","es":""},"format":"JOURNAL_ENTRY","accounts":[{"id":"PPE","text":{"fr":"","en":"Property, plant and equipment (warehouse)","es":""}},{"id":"REVAL","text":{"fr":"","en":"Revaluation surplus (other comprehensive income)","es":""}},{"id":"PL_GAIN","text":{"fr":"","en":"Gain in profit or loss","es":""}},{"id":"CASH","text":{"fr":"","en":"Cash","es":""}}],"lines":[{"id":"L1","account":"PPE","side":"DEBIT","amount":200000},{"id":"L2","account":"REVAL","side":"CREDIT","amount":200000}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000136","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.INTERACTIONS.IAS38_ACTIVE_MARKET"],"dimension":"RULE_KNOWLEDGE","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"ACTIVE_MARKET_LOCATION","difficulty":"BEGINNER","estimated_time_s":45,"lesson_id":"LS.IFRS13.000015","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000015","section_id":"rule-ppe"},"references":["IFRS 13","IAS 38 §75"],"exercise":{"prompt":{"fr":"","en":"Where is the definition of an active market used for revaluing an intangible asset found?","es":""},"explanation":{"fr":"","en":"The definition of an active market is in Appendix A of IFRS 13 (IFRS 13, Appendix A).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In Appendix A of IFRS 13","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"In the inventories standard","es":""},"correct":false,"feedback":{"fr":"","en":"The definition of an active market is in Appendix A of IFRS 13 (IFRS 13, Appendix A).","es":""}},{"id":"C","text":{"fr":"","en":"It does not exist: each entity defines it","es":""},"correct":false,"feedback":{"fr":"","en":"A definition exists and applies; the entity does not define it freely (IFRS 13, Appendix A).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000137","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.INTERACTIONS.IAS38_ACTIVE_MARKET"],"dimension":"RECOGNITION","format":"CLASSIFICATION","context":"MEDIA","tested_point":"INTANGIBLE_ACTIVE_MARKET","difficulty":"INTERMEDIATE","estimated_time_s":75,"lesson_id":"LS.IFRS13.000015","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000015","section_id":"rule-ppe"},"references":["IAS 38 §75","IAS 38 §78"],"exercise":{"prompt":{"fr":"","en":"Classify each intangible asset: is an active market plausible, or not?","es":""},"explanation":{"fr":"","en":"An active market is rare for intangibles: certain freely transferable licences or quotas; not for brands or patents, each being unique (IAS 38, para. 78). Rule to remember: the asset's uniqueness generally rules out an active market.","es":""},"common_error":{"fr":"","en":"Revaluing a brand on the basis of isolated transactions.","es":""},"format":"CLASSIFICATION","categories":[{"id":"POSSIBLE","text":{"fr":"","en":"Active market possible (rare)","es":""}},{"id":"NO","text":{"fr":"","en":"Active market excluded","es":""}}],"items":[{"id":"I1","text":{"fr":"","en":"Freely transferable taxi licence in a jurisdiction","es":""},"category":"POSSIBLE"},{"id":"I2","text":{"fr":"","en":"Freely transferable production quota","es":""},"category":"POSSIBLE"},{"id":"I3","text":{"fr":"","en":"A product brand","es":""},"category":"NO"},{"id":"I4","text":{"fr":"","en":"A patent","es":""},"category":"NO"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000138","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.INTERACTIONS.IAS36_FVLCD"],"dimension":"CALCULATION","format":"CALCULATION","context":"INDUSTRIAL","tested_point":"FVLCD_CALC","difficulty":"INTERMEDIATE","estimated_time_s":150,"lesson_id":"LS.IFRS13.000015","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000015","section_id":"numeric"},"references":["IFRS 13 §25","IFRS 13 §6"],"exercise":{"prompt":{"fr":"","en":"Asset price in the principal market: €950,000 (case data); costs of disposal: €30,000. Calculate the IFRS 13 fair value and then fair value less costs of disposal.","es":""},"explanation":{"fr":"","en":"Fair value = 950,000 (price not adjusted for transaction costs); less costs of disposal 30,000 = 920,000. Rule to remember: IFRS 13 gives fair value without transaction costs, IAS 36 then deducts costs of disposal (IFRS 13, para. 25).","es":""},"common_error":{"fr":"","en":"Using 920,000 as the IFRS 13 fair value.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Price in the principal market","es":""},"value":"950000","unit":"EUR"},{"label":{"fr":"","en":"Costs of disposal of the asset","es":""},"value":"30000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"IFRS 13 fair value","es":""},"answer":950000,"tolerance":0,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Fair value less costs of disposal","es":""},"answer":920000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000139","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.INTERACTIONS.IAS36_FVLCD"],"dimension":"RULE_KNOWLEDGE","format":"TRUE_FALSE","context":"INDUSTRIAL","tested_point":"VIU_NOT_FV","difficulty":"BEGINNER","estimated_time_s":30,"lesson_id":"LS.IFRS13.000015","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000015","section_id":"rule-fv"},"references":["IFRS 13 §6"],"exercise":{"prompt":{"fr":"","en":"Value in use under IAS 36 is a fair value within the meaning of IFRS 13.","es":""},"explanation":{"fr":"","en":"Value in use is a neighbouring measure that is not a fair value (IFRS 13, para. 6). Rule to remember: do not call value in use 'fair value'.","es":""},"common_error":{"fr":"","en":"Equating value in use with fair value.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000140","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.INTERACTIONS.IFRS9"],"dimension":"CALCULATION","format":"CALCULATION","context":"BANKING","tested_point":"LOAN_FV_CALC","difficulty":"ADVANCED","estimated_time_s":150,"lesson_id":"LS.IFRS13.000015","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000015","section_id":"numeric"},"references":["IFRS 13 §60"],"exercise":{"prompt":{"fr":"","en":"A €1,000,000 loan at 1% over 3 years (annual interest of €10,000, principal repaid at maturity) is granted while the market rate is 4% (case data). Calculate the fair value by discounting (rounded to the euro) and the difference from the €1,000,000 price.","es":""},"explanation":{"fr":"","en":"Interest: 10,000 / 1.04 + 10,000 / 1.04² + 10,000 / 1.04³ ≈ 27,751; principal: 1,000,000 / 1.04³ ≈ 888,996; fair value ≈ 916,747; difference ≈ 83,253. Rule to remember: IFRS 13 gives the value, IFRS 9 settles the treatment of the difference (IFRS 13, para. 60).","es":""},"common_error":{"fr":"","en":"Discounting the principal only and forgetting interest.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"Annual interest","es":""},"value":"10000","unit":"EUR"},{"label":{"fr":"","en":"Principal at maturity","es":""},"value":"1000000","unit":"EUR"},{"label":{"fr":"","en":"Market rate","es":""},"value":"4","unit":"PERCENT"}],"steps":[{"id":"S1","label":{"fr":"","en":"Present value of interest","es":""},"answer":27751,"tolerance":1,"unit":"EUR"},{"id":"S2","label":{"fr":"","en":"Present value of principal","es":""},"answer":888996,"tolerance":1,"unit":"EUR"},{"id":"S3","label":{"fr":"","en":"Fair value","es":""},"answer":916747,"tolerance":2,"unit":"EUR"},{"id":"S4","label":{"fr":"","en":"Difference from the transaction price","es":""},"answer":83253,"tolerance":2,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000141","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.INTERACTIONS.IFRS9"],"dimension":"RECOGNITION","format":"MULTIPLE_CHOICE","context":"BANKING","tested_point":"IFRS9_BOUNDARY","difficulty":"ADVANCED","estimated_time_s":60,"lesson_id":"LS.IFRS13.000015","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000015","section_id":"rule-fv"},"references":["IFRS 13 §60","IFRS 13 §52"],"exercise":{"prompt":{"fr":"","en":"Which decisions belong to IFRS 9 rather than IFRS 13? (more than one)","es":""},"explanation":{"fr":"","en":"IFRS 13 provides the method; classification and the day-one difference belong to the instrument's standard (IFRS 13, para. 60).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The discounting method for the exit price","es":""},"correct":false,"feedback":{"fr":"","en":"The fair value measurement method belongs to IFRS 13.","es":""}},{"id":"B","text":{"fr":"","en":"The definition of the principal market","es":""},"correct":false,"feedback":{"fr":"","en":"The principal market is defined by IFRS 13 (IFRS 13, Appendix A).","es":""}},{"id":"C","text":{"fr":"","en":"The classification of the instrument","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The final treatment of the day-one difference","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000142","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.INTERACTIONS.IFRS3"],"dimension":"RECOGNITION","format":"SINGLE_CHOICE","context":"GENERIC","tested_point":"IFRS3_ROLES","difficulty":"ADVANCED","estimated_time_s":90,"lesson_id":"LS.IFRS13.000015","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000015","section_id":"rule-fv"},"references":["IFRS 13 §5","IFRS 13 §9"],"exercise":{"prompt":{"fr":"","en":"In a business combination, what is the role of IFRS 13?","es":""},"explanation":{"fr":"","en":"IFRS 13 provides the framework; IFRS 3 sets what is measured and the exceptions (IFRS 13, para. 9).","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Provide the framework to determine fair value, subject to the IFRS 3 exceptions","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Decide which items are measured at fair value and which are exceptions","es":""},"correct":false,"feedback":{"fr":"","en":"That choice belongs to IFRS 3, the business combination standard; IFRS 13 does not say when to measure at fair value.","es":""}},{"id":"C","text":{"fr":"","en":"Replace IFRS 3 for all combinations","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 13 provides a measurement framework and does not replace the business combination standard (IFRS 13, para. 9).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"LX.IFRS13.000143","source":"V2","standard_id":"IFRS13","concept_ids":["IFRS13.INTERACTIONS.IAS16_REVALUATION"],"dimension":"PROFESSIONAL_JUDGMENT","format":"MINI_CASE","context":"REAL_ESTATE","tested_point":"INTERACTIONS_MINI_CASE","difficulty":"EXPERT","estimated_time_s":240,"lesson_id":"LS.IFRS13.000015","review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000015","section_id":"judgment"},"references":["IFRS 13 §5","IFRS 13 §9","IFRS 13 §25","IAS 16 §31","IAS 16 §39"],"exercise":{"prompt":{"fr":"","en":"Analyse the revaluation of a building by the fictitious company Foncière Altane.","es":""},"explanation":{"fr":"","en":"Rule to remember: fair value under IFRS 13 without transaction costs; model and difference under IAS 16 (IFRS 13, para. 25).","es":""},"format":"MINI_CASE","scenario":{"fr":"","en":"Foncière Altane (fictitious) uses the revaluation model for an office building. Case data: carrying amount before revaluation €3,000,000; exit price in the principal market under IFRS 13: €3,400,000; estimated selling commissions €60,000; no earlier decrease in profit or loss (teaching assumption). A colleague proposes using €3,340,000 'net of selling costs' and taking the increase to profit or loss.","es":""},"exhibits":[],"parts":[{"prompt":{"fr":"","en":"Calculate the revaluation increase under IFRS 13.","es":""},"explanation":{"fr":"","en":"3,400,000 − 3,000,000 = 400,000; the €60,000 commissions are not deducted from fair value. Rule to remember: the price is not adjusted for transaction costs (IFRS 13, para. 25).","es":""},"common_error":{"fr":"","en":"Deducting selling commissions from the exit price: fair value is not adjusted for transaction costs.","es":""},"format":"CALCULATION","data":[{"label":{"fr":"","en":"IFRS 13 exit price","es":""},"value":"3400000","unit":"EUR"},{"label":{"fr":"","en":"Carrying amount","es":""},"value":"3000000","unit":"EUR"},{"label":{"fr":"","en":"Selling commissions (not deducted)","es":""},"value":"60000","unit":"EUR"}],"steps":[{"id":"S1","label":{"fr":"","en":"Revaluation increase","es":""},"answer":400000,"tolerance":0,"unit":"EUR"}],"id":"P1","dimension":"CALCULATION","formula":{"lines":[{"step":"S1","meaning":{"fr":"","en":"Revaluation increase","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"IFRS 13 exit price","es":""},"value":3400000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Carrying amount","es":""},"value":3000000,"unit":"EUR"}],"result":400000,"unit":"EUR"}],"rationale":{"fr":"","en":"the price is not adjusted for transaction costs (IFRS 13, para. 25).","es":""},"references":["REF.IFRS13.25"]}},{"prompt":{"fr":"","en":"Where does the €400,000 increase go (no earlier decrease)?","es":""},"explanation":{"fr":"","en":"The treatment of the difference belongs to IAS 16, not IFRS 13.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"In other comprehensive income, accumulated in a revaluation surplus","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"In profit or loss for the period","es":""},"correct":false,"feedback":{"fr":"","en":"Under IAS 16, an increase goes to other comprehensive income unless it reverses an earlier decrease in profit or loss.","es":""}},{"id":"C","text":{"fr":"","en":"It stays off the accounts until sale","es":""},"correct":false,"feedback":{"fr":"","en":"The revaluation model carries the asset at its revalued amount (IAS 16).","es":""}}],"id":"P2","dimension":"ANALYSIS"},{"prompt":{"fr":"","en":"Which objections does the professional raise with the colleague? (more than one)","es":""},"explanation":{"fr":"","en":"Professional judgment: separate what IFRS 13 decides from what IAS 16 decides (IFRS 13, para. 25).","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IFRS 13 fair value is not reduced by transaction costs","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The treatment of the increase belongs to IAS 16 and not to a management preference","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"IFRS 13 requires the increase to be taken to profit or loss","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 13 does not deal with this point; IAS 16 does.","es":""}}],"id":"P3","dimension":"PROFESSIONAL_JUDGMENT"}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000001","standard_id":"IFRS13","concept_ids":["IFRS13.SCOPE.OBJECTIVE_AND_NATURE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000001","tested_point":"QST.IFRS13.000001","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000001","section_id":"rule-objective"},"references":["IFRS 13 §2"],"exercise":{"prompt":{"fr":"","en":"Fair value under IFRS 13 is the value the entity assigns to an asset given the use it intends to make of it.","es":""},"explanation":{"fr":"","en":"Fair value is a market-based measurement, not an entity-specific one: it rests on a hypothetical orderly transaction between market participants at the measurement date (IFRS 13, para. 2). The entity's intended use is not its basis. Trap: confusing fair value with an internal value in use. Rule to remember: Fair value is a market measurement, not an entity-specific value.","es":""},"common_error":{"fr":"","en":"Equating fair value with the value management gives the asset according to its plan.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000002","standard_id":"IFRS13","concept_ids":["IFRS13.SCOPE.OBJECTIVE_AND_NATURE","IFRS13.SCOPE.APPLICABILITY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000002","tested_point":"QST.IFRS13.000002","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000001","section_id":"rule-objective"},"references":["IFRS 13 §1"],"exercise":{"prompt":{"fr":"","en":"What is the objective of IFRS 13?","es":""},"explanation":{"fr":"","en":"IFRS 13 has three aims: define fair value, set its measurement framework in a single standard and prescribe the disclosures (IFRS 13, para. 1). It decides neither when to use fair value nor how to account for differences.","es":""},"common_error":{"fr":"","en":"Believing that IFRS 13 decides on the use of fair value in the accounts.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"To set the recognition of revaluation differences in profit or loss or in other comprehensive income, according to the nature of the item.","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 13 is a measurement and disclosure standard, not a recognition one: the treatment of differences belongs to the standard applicable to the item. Its purpose is to define fair value and set its framework (IFRS 13, para. 1). Rule to remember: IFRS 13 defines, frames the measurement and prescribes disclosures.","es":""}},{"id":"B","text":{"fr":"","en":"To define fair value, set out in a single standard the framework for measuring it and prescribe the disclosures.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"To set the single discount rate that all entities must use.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard sets no single rate: it gives a market-based measurement framework usable with various techniques. Its purpose is to define fair value, set its framework and prescribe disclosures (IFRS 13, para. 1). Rule to remember: IFRS 13 defines, frames the measurement and prescribes disclosures.","es":""}},{"id":"D","text":{"fr":"","en":"To decide in which cases assets must be measured at fair value.","es":""},"correct":false,"feedback":{"fr":"","en":"This is not the purpose of IFRS 13: it does not say when to measure at fair value; other standards do. Its purpose is to define fair value, set the measurement framework and prescribe disclosures (IFRS 13, para. 1). Rule to remember: IFRS 13 defines, frames the measurement and prescribes disclosures.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000003","standard_id":"IFRS13","concept_ids":["IFRS13.SCOPE.OBJECTIVE_AND_NATURE"],"dimension":"ANALYSIS","context":"V1_QST.IFRS13.000003","tested_point":"QST.IFRS13.000003","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000001","section_id":"rule-objective"},"references":["IFRS 13 §2","IFRS 13 §3"],"exercise":{"prompt":{"fr":"","en":"A colleague writes in a memo: \"Under IFRS 13, the fair value of our land is the one that reflects management's plan; it is an entity-specific measurement.\" What is wrong with this sentence?","es":""},"explanation":{"fr":"","en":"IFRS 13 defines fair value as a market measurement, not an entity-specific one (IFRS 13, para. 2). Management's plan does not determine it; without an observable price one still estimates an exit price from the market participants' viewpoint (IFRS 13, para. 3).","es":""},"common_error":{"fr":"","en":"Reasoning from management's plan instead of the market viewpoint.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Fair value must be determined from a price observable in an active market.","es":""},"correct":false,"feedback":{"fr":"","en":"Without an observable price the objective is unchanged: estimate the exit price at the measurement date, from a market participant's viewpoint, with a technique that favours observable inputs (IFRS 13, para. 3). That is not the real flaw in the sentence. Rule to remember: Fair value reflects market participants' assumptions, not the entity's plan.","es":""}},{"id":"B","text":{"fr":"","en":"The fair value of land is not covered by IFRS 13 but is left to management.","es":""},"correct":false,"feedback":{"fr":"","en":"When another standard requires or permits fair value, the IFRS 13 framework applies; it defines a market measure, not a management decision (IFRS 13, paras. 1 and 2). The sentence is wrong about the nature of the measure, not about the scope. Rule to remember: Fair value reflects market participants' assumptions, not the entity's plan.","es":""}},{"id":"C","text":{"fr":"","en":"The fair value of the land should equal its acquisition cost.","es":""},"correct":false,"feedback":{"fr":"","en":"Acquisition cost is a past entry price; fair value targets the exit price the entity would receive at the measurement date, from the market participants' viewpoint (IFRS 13, para. 2). The flaw is elsewhere: the sentence follows management's plan. Rule to remember: Fair value reflects market participants' assumptions, not the entity's plan.","es":""}},{"id":"D","text":{"fr":"","en":"Fair value is a market-based measurement, not an entity-specific one.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000004","standard_id":"IFRS13","concept_ids":["IFRS13.SCOPE.OBJECTIVE_AND_NATURE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000004","tested_point":"QST.IFRS13.000004","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000001","section_id":"rule-objective"},"references":["IFRS 13 §3"],"exercise":{"prompt":{"fr":"","en":"When no price is observable, the objective of the measurement remains to estimate the exit price at the measurement date, from a market participant's viewpoint.","es":""},"explanation":{"fr":"","en":"The absence of an observable price does not change the objective: one estimates an exit price, using a valuation technique that favours observable inputs (IFRS 13, para. 3). Trap: thinking a free internal estimate then replaces fair value. Rule to remember: Without an observable price, one still estimates an exit price from the market viewpoint.","es":""},"common_error":{"fr":"","en":"Thinking that, without an observable price, the entity simply uses its own estimate.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000005","standard_id":"IFRS13","concept_ids":["IFRS13.SCOPE.APPLICABILITY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000005","tested_point":"QST.IFRS13.000005","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000001","section_id":"rule-applicability"},"references":["IFRS 13 §5"],"exercise":{"prompt":{"fr":"","en":"IFRS 13 specifies in which cases an entity must measure its assets at fair value.","es":""},"explanation":{"fr":"","en":"IFRS 13 applies when another IFRS requires or permits a fair value measurement (IFRS 13, para. 5); it does not say when to measure at fair value. Trap: reading IFRS 13 as a standard that imposes fair value on some items. Rule to remember: IFRS 13 says how to measure at fair value, not whether to do so.","es":""},"common_error":{"fr":"","en":"Believing that IFRS 13 imposes fair value on certain items.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000006","standard_id":"IFRS13","concept_ids":["IFRS13.SCOPE.APPLICABILITY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000006","tested_point":"QST.IFRS13.000006","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000001","section_id":"rule-applicability"},"references":["IFRS 13 §5"],"exercise":{"prompt":{"fr":"","en":"In which case does the IFRS 13 measurement framework apply?","es":""},"explanation":{"fr":"","en":"IFRS 13 is a \"service\" standard: it frames fair value when another IFRS requires or permits it, subject to the exclusions (IFRS 13, para. 5). Rule to remember: The trigger is another standard, not the entity's wish.","es":""},"common_error":{"fr":"","en":"Believing the entity can trigger IFRS 13 by simply choosing a method.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"When another IFRS requires or permits a fair value measurement, or disclosures based on it.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"When the entity freely chooses fair value as its preferred method for all its items.","es":""},"correct":false,"feedback":{"fr":"","en":"No free choice of method triggers IFRS 13: it is the other standard that requires or permits fair value for a given item. The entity cannot extend it on its own initiative. Rule to remember: The trigger is another standard, not the entity's wish.","es":""}},{"id":"C","text":{"fr":"","en":"When the entity publishes financial information intended for investors, whatever the item.","es":""},"correct":false,"feedback":{"fr":"","en":"The audience of the information is not the criterion: IFRS 13 applies when another IFRS requires or permits fair value, or disclosures based on it. Rule to remember: The trigger is another standard, not the entity's wish.","es":""}},{"id":"D","text":{"fr":"","en":"When the entity wishes to know the market value of an item, even if no other standard asks for it.","es":""},"correct":false,"feedback":{"fr":"","en":"The entity's mere wish is not enough: the framework applies when another IFRS requires or permits fair value (IFRS 13). Without such a request from another standard, IFRS 13 is not triggered. Rule to remember: The trigger is another standard, not the entity's wish.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000007","standard_id":"IFRS13","concept_ids":["IFRS13.SCOPE.APPLICABILITY"],"dimension":"ANALYSIS","context":"V1_QST.IFRS13.000007","tested_point":"QST.IFRS13.000007","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000001","section_id":"rule-applicability"},"references":["IFRS 13 §5"],"exercise":{"prompt":{"fr":"","en":"Corvesne's accounting procedure states: \"IFRS 13 requires us to measure our property, plant and equipment at fair value every year.\" What is the error?","es":""},"explanation":{"fr":"","en":"IFRS 13 applies when another standard requires or permits fair value (IFRS 13, para. 5); it does not say when to measure at fair value. The procedure should therefore refer to the standard applicable to property, plant and equipment.","es":""},"common_error":{"fr":"","en":"Attributing to IFRS 13 an obligation to measure at fair value.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Property, plant and equipment is excluded from the scope of IFRS 13 in all cases.","es":""},"correct":false,"feedback":{"fr":"","en":"That is not the reason: the framework applies whenever another standard requires or permits fair value, subject to the exclusions (IFRS 13). The procedure's error is not a general exclusion, but making IFRS 13 the source of the obligation. Rule to remember: IFRS 13 frames fair value when another standard asks for it; it does not make it mandatory.","es":""}},{"id":"B","text":{"fr":"","en":"IFRS 13 requires fair value only for financial instruments, not for other assets, which would remain at historical cost.","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 13 requires fair value for no category: it frames measurement when another IFRS requires or permits it. Financial versus other assets is not its criterion. Rule to remember: IFRS 13 frames fair value when another standard asks for it; it does not make it mandatory.","es":""}},{"id":"C","text":{"fr":"","en":"IFRS 13 does not say when to measure at fair value: the standard applicable to the item requires or permits it.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"An annual frequency is too high: IFRS 13 requires a measurement every three years.","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 13 sets no such frequency, since it does not say when to measure at fair value. Frequency is a matter for the standard applicable to the item, not an invented three-year rhythm. Rule to remember: IFRS 13 frames fair value when another standard asks for it; it does not make it mandatory.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000008","standard_id":"IFRS13","concept_ids":["IFRS13.SCOPE.APPLICABILITY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000008","tested_point":"QST.IFRS13.000008","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000001","section_id":"rule-applicability"},"references":["IFRS 13 §8","IFRS 13 §5"],"exercise":{"prompt":{"fr":"","en":"To which measurements does the IFRS 13 framework apply when another standard requires or permits fair value?","es":""},"explanation":{"fr":"","en":"The measurement framework applies to initial as well as subsequent measurements when fair value is required or permitted by another standard (IFRS 13, para. 8). Rule to remember: The framework follows fair value, at entry and at later dates.","es":""},"common_error":{"fr":"","en":"Limiting the framework to first recognition.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"To subsequent measurements, initial measurement being governed by the transaction price.","es":""},"correct":false,"feedback":{"fr":"","en":"The framework also covers initial measurement when fair value is required or permitted at that stage by another standard (IFRS 13, para. 8). Excluding initial measurement restricts the scope without basis. Rule to remember: The framework follows fair value, at entry and at later dates.","es":""}},{"id":"B","text":{"fr":"","en":"To the notes disclosures only, not to the amounts in the financial statements.","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 13 covers fair value measurement and disclosures based on it (IFRS 13, paras. 5 and 8): the measurement framework governs the amounts, it is not confined to the notes. Rule to remember: The framework follows fair value, at entry and at later dates.","es":""}},{"id":"C","text":{"fr":"","en":"To initial as well as subsequent measurements.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"To initial measurement, subsequent measurements being governed by the standard that requires fair value.","es":""},"correct":false,"feedback":{"fr":"","en":"The framework is not limited to first recognition: it applies to initial as well as subsequent measurements, as long as fair value is required or permitted by another standard (IFRS 13, para. 8). Rule to remember: The framework follows fair value, at entry and at later dates.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000009","standard_id":"IFRS13","concept_ids":["IFRS13.SCOPE.EXCLUSIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000009","tested_point":"QST.IFRS13.000009","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000001","section_id":"exclusions"},"references":["IFRS 13 §6"],"exercise":{"prompt":{"fr":"","en":"A share-based payment expense within IFRS 2 is measured under the IFRS 13 measurement framework.","es":""},"explanation":{"fr":"","en":"Share-based payments (IFRS 2) are among the exclusions from the IFRS 13 measurement and disclosure scope (IFRS 13, para. 6). Their measurement follows IFRS 2. Trap: applying a framework because the words \"fair value\" appear in the other standard. Rule to remember: Share-based payments (IFRS 2) fall outside the scope of IFRS 13.","es":""},"common_error":{"fr":"","en":"Applying IFRS 13 to every amount described as a \"fair value\".","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000010","standard_id":"IFRS13","concept_ids":["IFRS13.SCOPE.EXCLUSIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000010","tested_point":"QST.IFRS13.000010","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000001","section_id":"exclusions"},"references":["IFRS 13 §6"],"exercise":{"prompt":{"fr":"","en":"Which of these measures resembles fair value without being fair value within the meaning of IFRS 13?","es":""},"explanation":{"fr":"","en":"Value in use under IAS 36 and net realisable value under IAS 2 are measures close to fair value but not fair value (IFRS 13, para. 6). They do not follow the IFRS 13 framework.","es":""},"common_error":{"fr":"","en":"Believing that any measure of a recoverable amount is a fair value.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The value in use used in IAS 36 impairment tests.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The price that would be received to sell an asset in its principal market at the measurement date.","es":""},"correct":false,"feedback":{"fr":"","en":"This exit price in the principal market is exactly fair value under IFRS 13 (IFRS 13, paras. 9 and 24). The measure that resembles it without being one is the value in use of IAS 36 (IFRS 13, para. 6). Rule to remember: Value in use and net realisable value are not fair values.","es":""}},{"id":"C","text":{"fr":"","en":"The price paid to transfer a liability to a market participant at the measurement date.","es":""},"correct":false,"feedback":{"fr":"","en":"This transfer price is the fair value of a liability within IFRS 13 (IFRS 13, para. 9): it is inside the standard's scope, not among its \"neighbouring\" measures (IFRS 13, para. 6). Rule to remember: Value in use and net realisable value are not fair values.","es":""}},{"id":"D","text":{"fr":"","en":"A quoted price in an active market for an identical asset.","es":""},"correct":false,"feedback":{"fr":"","en":"A quoted price in an active market is the typical fair value input; it is not an excluded measure (IFRS 13, paras. 6 and 24). Excluded neighbouring measures include, for example, the value in use of IAS 36. Rule to remember: Value in use and net realisable value are not fair values.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000011","standard_id":"IFRS13","concept_ids":["IFRS13.SCOPE.EXCLUSIONS"],"dimension":"ANALYSIS","context":"V1_QST.IFRS13.000011","tested_point":"QST.IFRS13.000011","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000001","section_id":"exclusions"},"references":["IFRS 13 §6"],"exercise":{"prompt":{"fr":"","en":"For its inventories, Valtrenne writes: \"Our net realisable value is a fair value within the meaning of IFRS 13, so we apply the IFRS 13 framework.\" What is the error?","es":""},"explanation":{"fr":"","en":"The net realisable value of IAS 2 is a measure close to fair value, but excluded from the scope of IFRS 13 (IFRS 13, para. 6). Valtrenne should therefore not apply the standard's framework to it. Rule to remember: A measure that looks like fair value is not necessarily one.","es":""},"common_error":{"fr":"","en":"Equating net realisable value with a fair value.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IFRS 13 never applies to inventories because they are not financial instruments.","es":""},"correct":false,"feedback":{"fr":"","en":"The reason given is inaccurate: the exclusion targets net realisable value as a measure, not the \"non-financial\" nature of inventories (IFRS 13, para. 6). The framework can apply to non-financial items when another standard asks for fair value. Rule to remember: A measure that looks like fair value is not necessarily one.","es":""}},{"id":"B","text":{"fr":"","en":"Fair value is not a concept applicable to inventories, which are current assets.","es":""},"correct":false,"feedback":{"fr":"","en":"Current versus non-current classification plays no role in the exclusion: it is the nature of the measure (net realisable value) that is kept out of the framework (IFRS 13, para. 6). Rule to remember: A measure that looks like fair value is not necessarily one.","es":""}},{"id":"C","text":{"fr":"","en":"Inventories are always measured at cost, never at a market value.","es":""},"correct":false,"feedback":{"fr":"","en":"That is not the point at issue: the sentence is wrong because net realisable value is a measure close to fair value without being fair value, excluded from the IFRS 13 framework (IFRS 13, para. 6). The reasoning about cost is not the standard's. Rule to remember: A measure that looks like fair value is not necessarily one.","es":""}},{"id":"D","text":{"fr":"","en":"The net realisable value of IAS 2 is a measure close to fair value but is not fair value.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000012","standard_id":"IFRS13","concept_ids":["IFRS13.SCOPE.EXCLUSIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000012","tested_point":"QST.IFRS13.000012","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000001","section_id":"exclusions"},"references":["IFRS 13 §6"],"exercise":{"prompt":{"fr":"","en":"Which of these transactions is excluded from the IFRS 13 measurement and disclosure scope?","es":""},"explanation":{"fr":"","en":"Lease transactions within IFRS 16 are excluded from the IFRS 13 scope, as are share-based payments (IFRS 13, para. 6). Rule to remember: Two transaction exclusions to know: IFRS 2 and IFRS 16.","es":""},"common_error":{"fr":"","en":"Applying the IFRS 13 framework to a lease accounted for under IFRS 16.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The measurement of an asset whose exit price is estimated using a valuation technique.","es":""},"correct":false,"feedback":{"fr":"","en":"Estimating an exit price with a valuation technique stays within scope when fair value is asked for (IFRS 13, para. 24). The listed exclusions, such as IFRS 2 and IFRS 16, fall outside the scope (IFRS 13, para. 6). Rule to remember: Two transaction exclusions to know: IFRS 2 and IFRS 16.","es":""}},{"id":"B","text":{"fr":"","en":"A lease transaction within IFRS 16.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The sale of an asset in an organised market when a standard requires fair value.","es":""},"correct":false,"feedback":{"fr":"","en":"This situation is the case where the framework applies: another standard requires fair value (IFRS 13). It is not among the exclusions, which notably cover IFRS 2 and IFRS 16 (IFRS 13, para. 6). Rule to remember: Two transaction exclusions to know: IFRS 2 and IFRS 16.","es":""}},{"id":"D","text":{"fr":"","en":"The transfer of a liability to a third party when a standard requires the fair value of the liability.","es":""},"correct":false,"feedback":{"fr":"","en":"Measuring a liability at fair value under another standard is the core of the IFRS 13 scope (IFRS 13, para. 9). The listed exclusions concern IFRS 2, IFRS 16 and neighbouring measures (IFRS 13, para. 6). Rule to remember: Two transaction exclusions to know: IFRS 2 and IFRS 16.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000013","standard_id":"IFRS13","concept_ids":["IFRS13.SCOPE.DISCLOSURE_EXEMPTIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000013","tested_point":"QST.IFRS13.000013","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000001","section_id":"exclusions"},"references":["IFRS 13 §7"],"exercise":{"prompt":{"fr":"","en":"Under IFRS 13, for which items is the entity exempt from the standard's disclosures while still having to measure them under the framework? (Several answers.)","es":""},"explanation":{"fr":"","en":"IFRS 13 exempts certain assets and investments (employee benefit plans, retirement plans) and assets whose recoverable amount is fair value less costs of disposal from disclosures; measurement under the framework is not exempted (IFRS 13, para. 7).","es":""},"common_error":{"fr":"","en":"Confusing a disclosure exemption with a scope exclusion.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Share-based payments within IFRS 2.","es":""},"correct":false,"feedback":{"fr":"","en":"Share-based payments are excluded from the IFRS 13 scope: that is not a disclosure exemption with measurement kept under the framework. Do not confuse scope exclusion with disclosure exemption (IFRS 13, para. 7). Rule to remember: A disclosure exemption is not a measurement exemption.","es":""}},{"id":"B","text":{"fr":"","en":"Certain assets and investments of employee benefit or retirement plans.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Assets whose recoverable amount is fair value less costs of disposal.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Financial instruments quoted in an active market.","es":""},"correct":false,"feedback":{"fr":"","en":"An instrument quoted in an active market is not exempt: the quotation eases measurement but does not lighten disclosures. The exemptions target other items, such as plan assets and assets whose recoverable amount is fair value less costs of disposal (IFRS 13, para. 7). Rule to remember: A disclosure exemption is not a measurement exemption.","es":""}},{"id":"E","text":{"fr":"","en":"All financial liabilities measured at fair value through profit or loss.","es":""},"correct":false,"feedback":{"fr":"","en":"No general exemption covers these liabilities: the IFRS 13 exemptions concern specific items, such as retirement plan assets (IFRS 13, para. 7). A liability at fair value remains subject to the standard's disclosures. Rule to remember: A disclosure exemption is not a measurement exemption.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000014","standard_id":"IFRS13","concept_ids":["IFRS13.SCOPE.DISCLOSURE_EXEMPTIONS"],"dimension":"ANALYSIS","context":"V1_QST.IFRS13.000014","tested_point":"QST.IFRS13.000014","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000001","section_id":"exclusions"},"references":["IFRS 13 §7"],"exercise":{"prompt":{"fr":"","en":"Montaubry's closing file states: \"The assets of our retirement plan are exempt from IFRS 13 disclosures; therefore they need not be measured under the IFRS 13 framework.\" What is the error?","es":""},"explanation":{"fr":"","en":"The exemptions in paragraph 7 concern disclosures, not measurement (IFRS 13, para. 7). The plan assets remain measured under the IFRS 13 framework; their disclosure is lightened.","es":""},"common_error":{"fr":"","en":"Concluding that an item exempt from disclosures also escapes the measurement framework.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Retirement plan assets are excluded from the IFRS 13 scope like share-based payments.","es":""},"correct":false,"feedback":{"fr":"","en":"These are two different mechanisms: share-based payments are excluded from the scope (IFRS 13), whereas plan assets are only exempt from disclosures (IFRS 13, para. 7). These assets remain measured under the framework. Rule to remember: An item exempt from disclosures is still measured under IFRS 13.","es":""}},{"id":"B","text":{"fr":"","en":"The disclosure exemption applies only to assets with a Level 1 quoted price.","es":""},"correct":false,"feedback":{"fr":"","en":"The criterion is not the hierarchy level: the exemptions target specific categories of items, such as certain plan assets and assets whose recoverable amount is fair value less costs of disposal (IFRS 13, para. 7). Rule to remember: An item exempt from disclosures is still measured under IFRS 13.","es":""}},{"id":"C","text":{"fr":"","en":"A disclosure exemption is not a measurement exemption: the item is still measured under the framework.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Retirement plan assets are never exempt from disclosures.","es":""},"correct":false,"feedback":{"fr":"","en":"This correction is inaccurate: certain assets and investments of employee benefit and retirement plans are indeed among the disclosure exemptions (IFRS 13, para. 7). The flaw is the conclusion about measurement. Rule to remember: An item exempt from disclosures is still measured under IFRS 13.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000015","standard_id":"IFRS13","concept_ids":["IFRS13.DEFINITION.EXIT_PRICE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000015","tested_point":"QST.IFRS13.000015","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000002","section_id":"rule-definition"},"references":["IFRS 13 §9"],"exercise":{"prompt":{"fr":"","en":"Fair value is the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date.","es":""},"explanation":{"fr":"","en":"This is the definition of fair value: an exit price, at the measurement date, between market participants (IFRS 13, para. 9). Trap: reading it as the price paid on acquisition or as a price at another date. Rule to remember: Fair value is an exit price at the measurement date, between market participants.","es":""},"common_error":{"fr":"","en":"Taking the acquisition price as the definition of fair value.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000016","standard_id":"IFRS13","concept_ids":["IFRS13.DEFINITION.EXIT_PRICE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000016","tested_point":"QST.IFRS13.000016","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000002","section_id":"rule-definition"},"references":["IFRS 13 §24","IFRS 13 §9"],"exercise":{"prompt":{"fr":"","en":"Linde bought a machine for 120,000 a year ago. At the reporting date, selling this machine in its principal market to a market participant would bring in 95,000. Which amount corresponds to the fair value of the machine?","es":""},"explanation":{"fr":"","en":"Fair value is the exit price at the measurement date: 95,000 (IFRS 13, paras. 9 and 24). The price paid a year ago (120,000) is a past entry price. Rule to remember: Exit price at the measurement date, not a past entry price.","es":""},"common_error":{"fr":"","en":"Keeping the acquisition price as fair value.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"95,000, the price that would be received on sale at the measurement date.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"120,000, the price paid on acquisition.","es":""},"correct":false,"feedback":{"fr":"","en":"The price paid is a past entry price; fair value is the exit price that would be received at the measurement date (IFRS 13, paras. 9 and 24). Here the exit price is 95,000, not 120,000. Rule to remember: Exit price at the measurement date, not a past entry price.","es":""}},{"id":"C","text":{"fr":"","en":"107,500, the average of the price paid and the exit price, to smooth the gap between the two.","es":""},"correct":false,"feedback":{"fr":"","en":"No average is involved: fair value is the exit price itself in the principal market at the measurement date (IFRS 13, para. 24). Blending a past entry price with an exit price has no basis. Rule to remember: Exit price at the measurement date, not a past entry price.","es":""}},{"id":"D","text":{"fr":"","en":"25,000, the loss in value since acquisition.","es":""},"correct":false,"feedback":{"fr":"","en":"25,000 is the gap between the price paid and the exit price, not a fair value: the measurement gives an exit price of 95,000 (IFRS 13, paras. 9 and 24). A difference is not a price. Rule to remember: Exit price at the measurement date, not a past entry price.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000017","standard_id":"IFRS13","concept_ids":["IFRS13.DEFINITION.EXIT_PRICE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000017","tested_point":"QST.IFRS13.000017","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000002","section_id":"rule-definition"},"references":["IFRS 13 §9","IFRS 13 §24"],"exercise":{"prompt":{"fr":"","en":"Which characteristics correctly describe the fair value of an asset under IFRS 13? (Several answers.)","es":""},"explanation":{"fr":"","en":"Fair value is an exit price (sale of an asset or transfer of a liability), at the measurement date, in an orderly transaction between market participants (IFRS 13, para. 9). The acquisition price and the intended use are not part of it.","es":""},"common_error":{"fr":"","en":"Mixing entry price, value in use and exit price.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It depends on the use the entity intends to make of the asset.","es":""},"correct":false,"feedback":{"fr":"","en":"Fair value is a market measurement: the entity's intended use does not determine it (IFRS 13, para. 9). The assumptions are those of market participants. Rule to remember: Exit, measurement date, market: three words, three criteria.","es":""}},{"id":"B","text":{"fr":"","en":"It is the price the entity paid when acquiring the asset.","es":""},"correct":false,"feedback":{"fr":"","en":"The price paid on acquisition is an entry price, which may differ from fair value: fair value is an exit price at the measurement date (IFRS 13, paras. 9 and 24). Rule to remember: Exit, measurement date, market: three words, three criteria.","es":""}},{"id":"C","text":{"fr":"","en":"It is assessed at the measurement date.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It assumes an orderly transaction between market participants.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"It is an exit price: the one that would be received to sell the asset.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000018","standard_id":"IFRS13","concept_ids":["IFRS13.DEFINITION.EXIT_PRICE","IFRS13.SCOPE.OBJECTIVE_AND_NATURE"],"dimension":"ANALYSIS","context":"V1_QST.IFRS13.000018","tested_point":"QST.IFRS13.000018","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000001","section_id":"rule-objective"},"references":["IFRS 13 §9","IFRS 13 §2"],"exercise":{"prompt":{"fr":"","en":"At 31 December, Orsanne measures a liability using a transfer price observed on 30 September, ignoring the market conditions at 31 December, on the grounds that \"the nature of the price has not changed\". What is the error?","es":""},"explanation":{"fr":"","en":"Fair value is a price at the measurement date (IFRS 13, para. 9), under the market conditions of the time (IFRS 13, para. 2). A price observed three months earlier does not measure it, unless it still reflects those conditions.","es":""},"common_error":{"fr":"","en":"Using a price from another date without relating it to the conditions at the measurement date.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It should not measure liabilities at fair value at 31 December.","es":""},"correct":false,"feedback":{"fr":"","en":"Nothing in the definition deprives liabilities of fair value: it applies to a liability transferred at the measurement date (IFRS 13, para. 9). The error concerns the date of the price, not the possibility of measuring. Rule to remember: A price only makes sense at a date: the measurement date.","es":""}},{"id":"B","text":{"fr":"","en":"It uses a transfer price whereas the fair value of a liability is the price of settlement with the creditor.","es":""},"correct":false,"feedback":{"fr":"","en":"This is reversed: for a liability, fair value is the price paid to transfer it to a market participant (IFRS 13, para. 9), not a settlement with the creditor. The flaw lies in the date used. Rule to remember: A price only makes sense at a date: the measurement date.","es":""}},{"id":"C","text":{"fr":"","en":"It should use the initial issue price of the liability.","es":""},"correct":false,"feedback":{"fr":"","en":"The issue price is a past entry price; the definition targets an exit price at the measurement date (IFRS 13, para. 9). Replacing one wrong date with another is not a correction. Rule to remember: A price only makes sense at a date: the measurement date.","es":""}},{"id":"D","text":{"fr":"","en":"It ignores the measurement date: fair value is the price at that date, under the market conditions of the time.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000019","standard_id":"IFRS13","concept_ids":["IFRS13.DEFINITION.MARKET_PARTICIPANTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000019","tested_point":"QST.IFRS13.000019","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000002","section_id":"rule-participants"},"references":["IFRS 13 §23","IFRS 13 §22","IFRS 13"],"exercise":{"prompt":{"fr":"","en":"How does the entity deal with the notion of market participants when measuring an asset?","es":""},"explanation":{"fr":"","en":"The entity does not name a buyer: it describes independent, knowledgeable participants able and willing to transact (IFRS 13, Appendix A), from the asset and the market, whose assumptions prevail.","es":""},"common_error":{"fr":"","en":"Reasoning with a specific buyer instead of typical participants.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It limits itself to related parties, whose information is the most reliable because it comes directly from the entity.","es":""},"correct":false,"feedback":{"fr":"","en":"Market participants are described as independent (IFRS 13, Appendix A); related parties do not meet that characteristic. Reliability of information does not replace independence. Rule to remember: One describes typical participants; one does not name a counterparty.","es":""}},{"id":"B","text":{"fr":"","en":"It describes independent, knowledgeable participants able and willing to transact, without naming them (Appendix A).","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It names the potential buyers of the asset and uses the price offered by one of them.","es":""},"correct":false,"feedback":{"fr":"","en":"The entity does not have to identify specific participants: it describes their characteristics from the asset and the market (IFRS 13). A named buyer would introduce particular assumptions. Rule to remember: One describes typical participants; one does not name a counterparty.","es":""}},{"id":"D","text":{"fr":"","en":"It uses the assumptions of its own managers, supposed to be representative of the market, on the grounds that they know the asset better than anyone.","es":""},"correct":false,"feedback":{"fr":"","en":"The assumptions used are those of market participants acting in their best economic interest, not those of the entity's management (IFRS 13). Assuming management is \"representative\" bypasses this rule. Rule to remember: One describes typical participants; one does not name a counterparty.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000020","standard_id":"IFRS13","concept_ids":["IFRS13.DEFINITION.MARKET_PARTICIPANTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000020","tested_point":"QST.IFRS13.000020","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000002","section_id":"rule-participants"},"references":["IFRS 13 §23","IFRS 13 §22","IFRS 13"],"exercise":{"prompt":{"fr":"","en":"Which characteristics does the entity use to describe market participants? (Several answers.)","es":""},"explanation":{"fr":"","en":"Market participants are described as independent, knowledgeable, able and willing to transact (IFRS 13, Appendix A). Neither related parties nor chosen customers is a characteristic. Rule to remember: Independent, knowledgeable, able, willing: four qualities to remember.","es":""},"common_error":{"fr":"","en":"Using participants linked to the entity or chosen by it.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"They are chosen among the entity's current customers.","es":""},"correct":false,"feedback":{"fr":"","en":"Nothing limits participants to the entity's customers: their characteristics are described from the asset and the market, without identifying specific persons (IFRS 13). Rule to remember: Independent, knowledgeable, able, willing: four qualities to remember.","es":""}},{"id":"B","text":{"fr":"","en":"They are knowledgeable about the asset and the market.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"They are linked to the entity through common control.","es":""},"correct":false,"feedback":{"fr":"","en":"A common-control link contradicts the independence required of market participants (IFRS 13, Appendix A). A price agreed between related parties does not describe the market. Rule to remember: Independent, knowledgeable, able, willing: four qualities to remember.","es":""}},{"id":"D","text":{"fr":"","en":"They are independent of the entity.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"They are able to transact.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000021","standard_id":"IFRS13","concept_ids":["IFRS13.DEFINITION.MARKET_PARTICIPANTS"],"dimension":"APPLICATION","context":"V1_QST.IFRS13.000021","tested_point":"QST.IFRS13.000021","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000002","section_id":"rule-participants"},"references":["IFRS 13 §22","IFRS 13 §23","IFRS 13"],"exercise":{"prompt":{"fr":"","en":"Raffinerie Dalmour holds a patent. Only it could derive an extra gain of 40,000 from synergies with its own plant; no other market participant could benefit from it. To measure the patent at fair value, what does Dalmour do with this 40,000 gain?","es":""},"explanation":{"fr":"","en":"The assumptions of market participants, acting in their best economic interest, determine the price (IFRS 13). A gain that only Dalmour can obtain (case data) is excluded from the patent's price. Market participants are independent, knowledgeable parties able and willing to transact (IFRS 13, Appendix A).","es":""},"common_error":{"fr":"","en":"Including entity-specific synergies in the market price.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It leaves it out of the price, because no market participant could benefit from it.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It adds half of it, out of prudence.","es":""},"correct":false,"feedback":{"fr":"","en":"There is no half-sharing rule: either market participants could obtain this gain or they could not (IFRS 13). Here none could, so the share retained is nil. Prudence does not create a weighting. Rule to remember: A benefit the market cannot obtain does not enter the price.","es":""}},{"id":"C","text":{"fr":"","en":"It asks its director to estimate the share to include according to his own judgement.","es":""},"correct":false,"feedback":{"fr":"","en":"Management's judgement does not replace market participants' assumptions (IFRS 13). Their assumptions and economic interests determine the price. Rule to remember: A benefit the market cannot obtain does not enter the price.","es":""}},{"id":"D","text":{"fr":"","en":"It adds it to the price, since it holds the patent.","es":""},"correct":false,"feedback":{"fr":"","en":"The assumptions are those of market participants, not the entity's (IFRS 13): a gain that only Dalmour can obtain is not reflected in the price a participant would accept to pay. It is an entity-specific benefit. Rule to remember: A benefit the market cannot obtain does not enter the price.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000023","standard_id":"IFRS13","concept_ids":["IFRS13.DEFINITION.ENTITY_INTENT_IRRELEVANT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000023","tested_point":"QST.IFRS13.000023","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000002","section_id":"rule-intent"},"references":["IFRS 13 §3"],"exercise":{"prompt":{"fr":"","en":"If the entity intends to keep an asset until the end of its useful life, that intention reduces the asset's fair value compared with the market exit price.","es":""},"explanation":{"fr":"","en":"The measurement uses market participants' assumptions; the entity's intention to hold or dispose of the asset is not relevant (IFRS 13, para. 3). Fair value remains the market exit price. Trap: adjusting the price to one's own plans. Rule to remember: An intention to hold or to sell has no effect on fair value.","es":""},"common_error":{"fr":"","en":"Measuring lower because one does not plan to sell.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000024","standard_id":"IFRS13","concept_ids":["IFRS13.DEFINITION.ENTITY_INTENT_IRRELEVANT","IFRS13.DEFINITION.EXIT_PRICE"],"dimension":"APPLICATION","context":"V1_QST.IFRS13.000024","tested_point":"QST.IFRS13.000024","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000002","section_id":"rule-definition"},"references":["IFRS 13 §3","IFRS 13 §24"],"exercise":{"prompt":{"fr":"","en":"Savelin holds securities whose sale in their principal market would bring in 50,000 at the reporting date. Management plans to hold them for five years and proposes to measure them at 42,000 \"since we will not sell them\". Which amount represents fair value?","es":""},"explanation":{"fr":"","en":"Fair value is the exit price of 50,000 (IFRS 13, para. 24). Management's intention to hold the securities for five years is set aside: it is not relevant (IFRS 13, para. 3). Rule to remember: Intention to hold or sell: no effect on the exit price.","es":""},"common_error":{"fr":"","en":"Lowering the price because the entity does not intend to sell.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"42,000, because the intention to hold the securities reduces their value for the entity.","es":""},"correct":false,"feedback":{"fr":"","en":"The intention to hold is not relevant for fair value (IFRS 13, para. 3). It may reflect an internal value in use, but the exit price in the principal market remains 50,000 (IFRS 13, para. 24). Rule to remember: Intention to hold or sell: no effect on the exit price.","es":""}},{"id":"B","text":{"fr":"","en":"50,000, the exit price in the principal market, whatever management's intention.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"46,000, the average of the two amounts.","es":""},"correct":false,"feedback":{"fr":"","en":"No average is provided for: management's intention does not enter fair value (IFRS 13, para. 3), so the 50,000 exit price applies in full (IFRS 13, para. 24). A compromise keeps part of the intention. Rule to remember: Intention to hold or sell: no effect on the exit price.","es":""}},{"id":"D","text":{"fr":"","en":"No amount: as long as the securities are not sold, there is no fair value.","es":""},"correct":false,"feedback":{"fr":"","en":"Fair value is a hypothetical price at the measurement date, which assumes an orderly transaction without any actual sale being necessary (IFRS 13, paras. 2 and 9). The securities therefore have a fair value of 50,000. Rule to remember: Intention to hold or sell: no effect on the exit price.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000025","standard_id":"IFRS13","concept_ids":["IFRS13.DEFINITION.ASSET_LIABILITY_CHARACTERISTICS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000025","tested_point":"QST.IFRS13.000025","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000002","section_id":"rule-intent"},"references":["IFRS 13 §11","IFRS 13 §12"],"exercise":{"prompt":{"fr":"","en":"To set the price of a plot of land, which items does the entity take into account if market participants would themselves take them into account? (Several answers.)","es":""},"explanation":{"fr":"","en":"The price reflects the characteristics market participants would take into account: condition, location, restrictions attached to the asset (IFRS 13, paras. 11 and 12). The entity's intentions and its own restrictions are left out.","es":""},"common_error":{"fr":"","en":"Taking into account restrictions or intentions that do not follow the asset.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Management's intention to build on it later.","es":""},"correct":false,"feedback":{"fr":"","en":"An entity's intention is not a characteristic of the land: the assumptions are those of market participants (IFRS 13, paras. 4 and 10). It does not change the price. Rule to remember: A characteristic counts if it follows the asset and the market would take it into account.","es":""}},{"id":"B","text":{"fr":"","en":"The condition of the land.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The location of the land.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A restriction attached to the land that would follow the land to the buyer.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"A restriction imposed on the entity by a loan agreement that would not follow the land on sale.","es":""},"correct":false,"feedback":{"fr":"","en":"This restriction is specific to the entity, not attached to the land: it is taken into account only if it is a characteristic of the asset (IFRS 13, para. 12). Market participants would not bear it. Rule to remember: A characteristic counts if it follows the asset and the market would take it into account.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000026","standard_id":"IFRS13","concept_ids":["IFRS13.DEFINITION.ASSET_LIABILITY_CHARACTERISTICS"],"dimension":"ANALYSIS","context":"V1_QST.IFRS13.000026","tested_point":"QST.IFRS13.000026","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000002","section_id":"rule-intent"},"references":["IFRS 13 §12","IFRS 13 §11"],"exercise":{"prompt":{"fr":"","en":"To measure a building, Garrick applies a 10% discount because the entity's loan agreement forbids it from selling the building within five years. This ban would not follow the building to a buyer. What is the error?","es":""},"explanation":{"fr":"","en":"Garrick's contractual restriction is specific to the entity: it does not follow the building. Not being a characteristic of the asset, it is not reflected in the price market participants would pay (IFRS 13, para. 12).","es":""},"common_error":{"fr":"","en":"Applying a discount for an entity-specific restriction.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The restriction is specific to the entity and not attached to the building: it is not a characteristic of the asset.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The discount should apply to the location and not to the condition of the building, since the condition of the building would already be reflected in the market price.","es":""},"correct":false,"feedback":{"fr":"","en":"Condition and location are examples of the asset's characteristics (IFRS 13, para. 11); the point here is not to choose between them. The discount is unjustified because the restriction is not attached to the building (IFRS 13, para. 12). Rule to remember: No discount for a restriction that is not attached to the asset.","es":""}},{"id":"C","text":{"fr":"","en":"A 10% discount is too small; 20% should be used.","es":""},"correct":false,"feedback":{"fr":"","en":"The rate is not the issue: no discount is justified for a restriction that is not attached to the building (IFRS 13, para. 12). Changing the percentage keeps the underlying error. Rule to remember: No discount for a restriction that is not attached to the asset.","es":""}},{"id":"D","text":{"fr":"","en":"The discount should have been computed over the remaining term of the prohibition rather than as a flat rate.","es":""},"correct":false,"feedback":{"fr":"","en":"How the discount is computed is not the issue: the restriction is entity-specific, does not follow the building and does not enter the participants' price (IFRS 13, paras. 11 and 12). Rule to remember: No discount for a restriction that is not attached to the asset.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000027","standard_id":"IFRS13","concept_ids":["IFRS13.UNIT.UNIT_OF_ACCOUNT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000027","tested_point":"QST.IFRS13.000027","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000003","section_id":"rule"},"references":["IFRS 13 §14","IFRS 13 §13"],"exercise":{"prompt":{"fr":"","en":"Who sets the unit of account of an asset or liability measured at fair value?","es":""},"explanation":{"fr":"","en":"As a general rule, the standard that requires or permits fair value determines the unit of account, subject to the provisions of IFRS 13 (IFRS 13, para. 14). The item measured may be single or a group (IFRS 13, para. 13).","es":""},"common_error":{"fr":"","en":"Attributing the choice of the unit of account to IFRS 13.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The entity, according to the measurement method most convenient to it.","es":""},"correct":false,"feedback":{"fr":"","en":"Convenience of method does not determine the unit: it is set by the standard applicable to the item (IFRS 13, para. 14). The entity does not freely choose the level of aggregation. Rule to remember: The unit comes in principle from the item's standard, subject to the provisions of IFRS 13.","es":""}},{"id":"B","text":{"fr":"","en":"The principal market, according to the volume of observed transactions.","es":""},"correct":false,"feedback":{"fr":"","en":"The principal market serves to set the price, not the unit of measurement. The unit comes from the standard that requires or permits fair value (IFRS 13, para. 14), whereas the market falls under paragraph 16. Rule to remember: The unit comes in principle from the item's standard, subject to the provisions of IFRS 13.","es":""}},{"id":"C","text":{"fr":"","en":"The standard that requires or permits fair value measurement of the item.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"IFRS 13, which specifies the level of aggregation of each item.","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 13 does not specify the level of aggregation of each item: as a general rule, the unit is determined by the standard that requires or permits fair value, subject to the provisions of IFRS 13 (IFRS 13, para. 14). IFRS 13 frames the measurement of the unit retained, not its choice item by item. Rule to remember: The unit comes in principle from the item's standard, subject to the provisions of IFRS 13.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000028","standard_id":"IFRS13","concept_ids":["IFRS13.UNIT.UNIT_OF_ACCOUNT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000028","tested_point":"QST.IFRS13.000028","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000003","section_id":"rule"},"references":["IFRS 13 §13","IFRS 13 §14"],"exercise":{"prompt":{"fr":"","en":"Depending on the unit of account set by the applicable standard, the item measured at fair value may be: (Several answers.)","es":""},"explanation":{"fr":"","en":"The asset or liability measured may be single or a group of assets, liabilities, or assets and liabilities, depending on the unit of account (IFRS 13, para. 13). That unit comes from the applicable standard (IFRS 13, para. 14).","es":""},"common_error":{"fr":"","en":"Thinking that the unit is always the single item.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"An item the valuer chooses to simplify the calculations.","es":""},"correct":false,"feedback":{"fr":"","en":"The valuer's choice does not set the unit: it depends on the standard that requires or permits fair value (IFRS 13, paras. 13 and 14). Ease of calculation is not a criterion. Rule to remember: Single or group: the unit of account decides.","es":""}},{"id":"B","text":{"fr":"","en":"A group of assets and liabilities.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A single asset.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A group of assets.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000029","standard_id":"IFRS13","concept_ids":["IFRS13.UNIT.UNIT_OF_ACCOUNT"],"dimension":"ANALYSIS","context":"V1_QST.IFRS13.000029","tested_point":"QST.IFRS13.000029","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000003","section_id":"rule"},"references":["IFRS 13 §14","IFRS 13 §13"],"exercise":{"prompt":{"fr":"","en":"Prunelle's measurement procedure states: \"IFRS 13 lets us freely choose, for each item, the unit to measure: we use the one that makes the team's work easier.\" What is the error?","es":""},"explanation":{"fr":"","en":"The unit of account is set by the standard that requires or permits fair value, subject to the provisions of IFRS 13, and not by convenience (IFRS 13, para. 14). Prunelle's procedure should refer to the standard applicable to each item.","es":""},"common_error":{"fr":"","en":"Thinking IFRS 13 lets the unit be chosen freely rather than following the standard applicable to the item.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The unit of account is set by the standard that requires or permits fair value (subject to IFRS 13), not by convenience.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The unit is chosen by the auditor during the audit of the annual accounts.","es":""},"correct":false,"feedback":{"fr":"","en":"The choice of unit belongs neither to the entity nor to the auditor: it follows from the standard that requires or permits fair value (IFRS 13, para. 14). Rule to remember: No free choice of unit: the item's standard decides.","es":""}},{"id":"C","text":{"fr":"","en":"Only single items can be measured; groups of assets are excluded, which simplifies the valuation team's work.","es":""},"correct":false,"feedback":{"fr":"","en":"A group of assets, liabilities, or assets and liabilities can be the item measured, depending on the unit of account (IFRS 13, para. 13). The flaw in the sentence is the free choice, not the existence of groups. Rule to remember: No free choice of unit: the item's standard decides.","es":""}},{"id":"D","text":{"fr":"","en":"The unit must always be the principal market of the item measured, whatever the case.","es":""},"correct":false,"feedback":{"fr":"","en":"The principal market serves to set the exit price and has nothing to do with the unit of account (IFRS 13, para. 14). Confusing unit and market blurs two distinct steps. Rule to remember: No free choice of unit: the item's standard decides.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000030","standard_id":"IFRS13","concept_ids":["IFRS13.UNIT.UNIT_OF_ACCOUNT"],"dimension":"APPLICATION","context":"V1_QST.IFRS13.000030","tested_point":"QST.IFRS13.000030","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000003","section_id":"rule"},"references":["IFRS 13 §14","IFRS 13 §13"],"exercise":{"prompt":{"fr":"","en":"The standard applicable to Vallorge's portfolio of receivables requires it to be measured at fair value and treats the whole portfolio as the unit of account (case data). The team measures each receivable separately and then adds them up. What should the team do?","es":""},"explanation":{"fr":"","en":"The applicable standard sets the unit of account (IFRS 13, para. 14): here, the whole portfolio, measured as a group (IFRS 13, para. 13). Adding up single measurements changes the item measured.","es":""},"common_error":{"fr":"","en":"Measuring a finer unit than the one set by the applicable standard.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Ask IFRS 13 to decide between a single receivable and the portfolio.","es":""},"correct":false,"feedback":{"fr":"","en":"Here IFRS 13 does not decide: the unit is given by the standard that requires or permits fair value (IFRS 13, para. 14). The case already states it is the whole portfolio. Rule to remember: The unit given by the item's standard binds the valuer.","es":""}},{"id":"B","text":{"fr":"","en":"Measure only the largest receivables and extrapolate.","es":""},"correct":false,"feedback":{"fr":"","en":"Extrapolating from part of the receivables does not match the unit set, which is the whole portfolio (IFRS 13, paras. 13 and 14). The case says nothing about such a shortcut. Rule to remember: The unit given by the item's standard binds the valuer.","es":""}},{"id":"C","text":{"fr":"","en":"Carry on receivable by receivable: the finest unit is the most reliable, since each receivable has its own price.","es":""},"correct":false,"feedback":{"fr":"","en":"Perceived reliability does not determine the unit: it is set by the applicable standard, here the portfolio (IFRS 13, para. 14). Measuring a different unit means measuring a different item. Rule to remember: The unit given by the item's standard binds the valuer.","es":""}},{"id":"D","text":{"fr":"","en":"Measure the whole portfolio as a group, because that is the unit set by the applicable standard.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000031","standard_id":"IFRS13","concept_ids":["IFRS13.MARKET.PRINCIPAL_MARKET"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000031","tested_point":"QST.IFRS13.000031","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000004","section_id":"rule-markets"},"references":["IFRS 13 §16","IFRS 13"],"exercise":{"prompt":{"fr":"","en":"What is the principal market of an asset within the meaning of IFRS 13?","es":""},"explanation":{"fr":"","en":"The principal market is the one with the highest volume and level of activity (IFRS 13, Appendix A); the measurement assumes the transaction takes place there or, failing that, in the most advantageous market (IFRS 13, para. 16).","es":""},"common_error":{"fr":"","en":"Confusing the principal market with the best-price market.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The market offering the highest selling price.","es":""},"correct":false,"feedback":{"fr":"","en":"The highest price rather characterises the most advantageous market, used when there is no principal market (IFRS 13, para. 16 and Appendix A). The principal market is defined by volume and level of activity (IFRS 13, Appendix A). Rule to remember: Principal market = highest volume and activity.","es":""}},{"id":"B","text":{"fr":"","en":"The market where the volume and level of activity are highest for this asset.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The market with the lowest transaction costs, whatever its level of activity.","es":""},"correct":false,"feedback":{"fr":"","en":"Transaction costs serve to compare markets for the most advantageous market (IFRS 13, Appendix A); they do not define the principal market, which is characterised by volume and activity (IFRS 13, Appendix A). Rule to remember: Principal market = highest volume and activity.","es":""}},{"id":"D","text":{"fr":"","en":"The market in which the asset was bought.","es":""},"correct":false,"feedback":{"fr":"","en":"The place of purchase is not the criterion: the principal market is the one with the highest volume and level of activity (IFRS 13, Appendix A). The entity's history does not define it. Rule to remember: Principal market = highest volume and activity.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000032","standard_id":"IFRS13","concept_ids":["IFRS13.MARKET.PRINCIPAL_MARKET"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000032","tested_point":"QST.IFRS13.000032","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000004","section_id":"rule-markets"},"references":["IFRS 13 §16","IFRS 13 §17","IFRS 13 §19","IFRS 13"],"exercise":{"prompt":{"fr":"","en":"Which statements about the principal market are correct? (Several answers.)","es":""},"explanation":{"fr":"","en":"The principal market is defined by volume and level of activity (IFRS 13, Appendix A), requires the entity's access at the measurement date and may differ from one entity to another (IFRS 13, para. 19). It requires neither an exhaustive search (IFRS 13, para. 17) nor the best price.","es":""},"common_error":{"fr":"","en":"Believing that all existing markets must be compared.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The entity must search exhaustively all existing markets before concluding.","es":""},"correct":false,"feedback":{"fr":"","en":"An exhaustive search of all markets is not required (IFRS 13, para. 17). The entity considers the information reasonably available; such a requirement would be disproportionate. Rule to remember: Volume, access, entity-specificity: three benchmarks.","es":""}},{"id":"B","text":{"fr":"","en":"It is always the market that offers the entity the best price.","es":""},"correct":false,"feedback":{"fr":"","en":"The best price does not define the principal market: where one exists, the measurement refers to it even if another market offers a better price (IFRS 13, para. 18). Rule to remember: Volume, access, entity-specificity: three benchmarks.","es":""}},{"id":"C","text":{"fr":"","en":"It is the market with the highest volume and level of activity.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Two different entities may have different principal markets.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The entity must be able to access it at the measurement date.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000033","standard_id":"IFRS13","concept_ids":["IFRS13.MARKET.PRINCIPAL_MARKET"],"dimension":"APPLICATION","context":"V1_QST.IFRS13.000033","tested_point":"QST.IFRS13.000033","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000004","section_id":"rule-markets"},"references":["IFRS 13 §18","IFRS 13 §16"],"exercise":{"prompt":{"fr":"","en":"Arvenne sells copper. Market X has the largest volume and the highest level of activity; the price there is 100 per lot. Market Y, smaller and thinly traded, would offer 104 per lot. Arvenne has access to both markets at the measurement date. Which price does it use for the fair value of a lot?","es":""},"explanation":{"fr":"","en":"A principal market exists (X: highest volume and activity) and the entity has access to it: the measurement refers to it even if Y offers a better price (IFRS 13, paras. 16 and 18). Fair value is therefore 100 per lot.","es":""},"common_error":{"fr":"","en":"Using the best price although a principal market exists.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"4, the gap between the two markets.","es":""},"correct":false,"feedback":{"fr":"","en":"4 is a price difference, not an exit price. The fair value of a lot is the exit price in the principal market, i.e. 100 (IFRS 13, paras. 18 and 24). Rule to remember: With an accessible principal market, a better price elsewhere does not count.","es":""}},{"id":"B","text":{"fr":"","en":"104, the higher price of the two markets.","es":""},"correct":false,"feedback":{"fr":"","en":"The higher price is not the criterion when a principal market exists: the measurement refers to it even if another market offers a better price (IFRS 13, para. 18). Market X is the principal market, with a price of 100. Rule to remember: With an accessible principal market, a better price elsewhere does not count.","es":""}},{"id":"C","text":{"fr":"","en":"100, the price in market X, which is the principal market.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"102, the average of the two prices.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard provides no average across markets: the measurement assumes a transaction in the principal market (IFRS 13, paras. 16 and 18). Averaging the prices amounts to using neither. Rule to remember: With an accessible principal market, a better price elsewhere does not count.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000034","standard_id":"IFRS13","concept_ids":["IFRS13.MARKET.PRINCIPAL_MARKET"],"dimension":"ANALYSIS","context":"V1_QST.IFRS13.000034","tested_point":"QST.IFRS13.000034","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000004","section_id":"rule-markets"},"references":["IFRS 13 §19","IFRS 13 §16","IFRS 13 §17"],"exercise":{"prompt":{"fr":"","en":"Market Z is the principal market of Hallevin for its tin lots. Brindelle, which has no access to Z at the measurement date, writes: \"Our principal market is also Z, since it is Hallevin's.\" What is the error?","es":""},"explanation":{"fr":"","en":"An entity's principal market is assessed for that entity: it must have access to it at the measurement date, and two entities may have different principal markets (IFRS 13, para. 19). Brindelle cannot adopt Hallevin's.","es":""},"common_error":{"fr":"","en":"Adopting another entity's principal market without having access to it.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The entity must be able to access the market at the measurement date, and different entities may have different principal markets.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Brindelle should have searched exhaustively all markets in existence before concluding, comparing the volumes and prices of each.","es":""},"correct":false,"feedback":{"fr":"","en":"An exhaustive search of all markets is not required (IFRS 13, para. 17). Brindelle's error is to use a market to which it has no access (IFRS 13, para. 19). Rule to remember: The principal market is the one the entity has access to.","es":""}},{"id":"C","text":{"fr":"","en":"Brindelle should use the most advantageous market in all cases.","es":""},"correct":false,"feedback":{"fr":"","en":"The most advantageous market applies when there is no principal market (IFRS 13, para. 16), not in all cases. Brindelle must first look for its own principal market, to which it has access (IFRS 13, para. 19). Rule to remember: The principal market is the one the entity has access to.","es":""}},{"id":"D","text":{"fr":"","en":"The principal market is always that of the largest competitor.","es":""},"correct":false,"feedback":{"fr":"","en":"No link with the competitor: the principal market is defined by volume and level of activity, with the access of the entity concerned (IFRS 13, paras. 16 and 19). The original sentence suffers from a lack of access. Rule to remember: The principal market is the one the entity has access to.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000035","standard_id":"IFRS13","concept_ids":["IFRS13.MARKET.MOST_ADVANTAGEOUS_MARKET","IFRS13.MARKET.PRINCIPAL_MARKET"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000035","tested_point":"QST.IFRS13.000035","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000004","section_id":"rule-markets"},"references":["IFRS 13 §16","IFRS 13"],"exercise":{"prompt":{"fr":"","en":"In which case does the entity use the price of the most advantageous market to measure an asset?","es":""},"explanation":{"fr":"","en":"The most advantageous market is a fallback: it applies when there is no principal market (IFRS 13, para. 16). It maximises the amount received, after transaction and transport costs (IFRS 13, Appendix A).","es":""},"common_error":{"fr":"","en":"Going straight to the best price without looking for a principal market.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Whenever a market offers a higher price than the principal market.","es":""},"correct":false,"feedback":{"fr":"","en":"When a principal market exists, the measurement refers to it even if another market offers a better price (IFRS 13, para. 18). The most advantageous market is used only if there is no principal market (IFRS 13, para. 16). Rule to remember: Principal market first; most advantageous market otherwise.","es":""}},{"id":"B","text":{"fr":"","en":"When the entity wishes to make a gain on the disposal of the asset.","es":""},"correct":false,"feedback":{"fr":"","en":"A wish for gain is an intention of the entity, not relevant to fair value (IFRS 13). The most advantageous market is used when there is no principal market (IFRS 13, para. 16). Rule to remember: Principal market first; most advantageous market otherwise.","es":""}},{"id":"C","text":{"fr":"","en":"When transaction costs are nil in the principal market.","es":""},"correct":false,"feedback":{"fr":"","en":"Transaction costs do not affect the choice between principal and most advantageous market: as long as a principal market exists, it prevails (IFRS 13, paras. 16 and 18). Rule to remember: Principal market first; most advantageous market otherwise.","es":""}},{"id":"D","text":{"fr":"","en":"When there is no principal market for the asset.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000036","standard_id":"IFRS13","concept_ids":["IFRS13.MARKET.MOST_ADVANTAGEOUS_MARKET","IFRS13.MARKET.TRANSACTION_COSTS","IFRS13.MARKET.TRANSPORT_COSTS"],"dimension":"CALCULATION","context":"V1_VG.IFRS13.000001","tested_point":"VG.IFRS13.000001","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000004","section_id":"rule-markets"},"references":["IFRS 13","IFRS 13 §25","IFRS 13 §26"],"exercise":{"prompt":{"fr":"","en":"Tolvane sells a lot of wheat; there is no principal market. Market A: price {price_a}, transaction costs {transaction_a}, transport costs {transport_a}. Market B: price {price_b}, transaction costs {transaction_b}, transport costs {transport_b}. Compute the net amount of each market, then the net amount of the most advantageous market.","es":""},"explanation":{"fr":"","en":"The most advantageous market maximises the amount received after transaction and transport costs (IFRS 13, Appendix A). Market A: 1,000 − 30 − 20 = 950. Market B: 1,010 − 45 − 35 = 930. The higher is 950 (market A), although B shows the higher gross price. Trap: comparing gross prices. Rule to remember: Choose the market on the net amount after costs, not on the gross price.","es":""},"common_error":{"fr":"","en":"Choosing market B because its gross price is higher.","es":""},"format":"CALCULATION","placeholders":[{"id":"price_a","value":"1000","unit":"EUR"},{"id":"transaction_a","value":"30","unit":"EUR"},{"id":"transport_a","value":"20","unit":"EUR"},{"id":"price_b","value":"1010","unit":"EUR"},{"id":"transaction_b","value":"45","unit":"EUR"},{"id":"transport_b","value":"35","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Price, market A","es":""},"value":"1000","unit":"EUR"},{"label":{"fr":"","en":"Transaction costs, market A","es":""},"value":"30","unit":"EUR"},{"label":{"fr":"","en":"Transport costs, market A","es":""},"value":"20","unit":"EUR"},{"label":{"fr":"","en":"Price, market B","es":""},"value":"1010","unit":"EUR"},{"label":{"fr":"","en":"Transaction costs, market B","es":""},"value":"45","unit":"EUR"},{"label":{"fr":"","en":"Transport costs, market B","es":""},"value":"35","unit":"EUR"}],"steps":[{"id":"NET_A","label":{"fr":"","en":"Net amount, market A","es":""},"answer":950,"tolerance":0,"unit":"EUR"},{"id":"NET_B","label":{"fr":"","en":"Net amount, market B","es":""},"answer":930,"tolerance":0,"unit":"EUR"},{"id":"NET_MAM","label":{"fr":"","en":"Net amount of the most advantageous market","es":""},"answer":950,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"NET_A","meaning":{"fr":"","en":"Net amount, market A","es":""},"expression":"a - b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Price, market A","es":""},"value":1000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Transaction costs, market A","es":""},"value":30,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Transport costs, market A","es":""},"value":20,"unit":"EUR"}],"result":950,"unit":"EUR"},{"step":"NET_B","meaning":{"fr":"","en":"Net amount, market B","es":""},"expression":"a - b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Price, market B","es":""},"value":1010,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Transaction costs, market B","es":""},"value":45,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Transport costs, market B","es":""},"value":35,"unit":"EUR"}],"result":930,"unit":"EUR"}],"rationale":{"fr":"","en":"Choose the market on the net amount after costs, not on the gross price.","es":""},"references":["REF.IFRS13.APPA","REF.IFRS13.25","REF.IFRS13.26"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000037","standard_id":"IFRS13","concept_ids":["IFRS13.MARKET.MOST_ADVANTAGEOUS_MARKET","IFRS13.MARKET.TRANSACTION_COSTS","IFRS13.MARKET.TRANSPORT_COSTS"],"dimension":"CALCULATION","context":"V1_VG.IFRS13.000001","tested_point":"VG.IFRS13.000001","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000004","section_id":"rule-markets"},"references":["IFRS 13","IFRS 13 §25","IFRS 13 §26"],"exercise":{"prompt":{"fr":"","en":"Rovelle trades steel plates; there is no principal market. Market A: price {price_a}, transaction costs {transaction_a}, transport costs {transport_a}. Market B: price {price_b}, transaction costs {transaction_b}, transport costs {transport_b}. Compute the net amount of each market, then that of the most advantageous market.","es":""},"explanation":{"fr":"","en":"The most advantageous market is determined after transaction and transport costs (IFRS 13, Appendix A). Market A: 4,200 − 60 − 90 = 4,050. Market B: 4,150 − 25 − 30 = 4,095. The higher is 4,095 (market B), even though A shows the higher gross price. Trap: relying on the gross price. Rule to remember: The most advantageous market is read on the net amount.","es":""},"common_error":{"fr":"","en":"Using the market with the higher gross price.","es":""},"format":"CALCULATION","placeholders":[{"id":"price_a","value":"4200","unit":"EUR"},{"id":"transaction_a","value":"60","unit":"EUR"},{"id":"transport_a","value":"90","unit":"EUR"},{"id":"price_b","value":"4150","unit":"EUR"},{"id":"transaction_b","value":"25","unit":"EUR"},{"id":"transport_b","value":"30","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Price, market A","es":""},"value":"4200","unit":"EUR"},{"label":{"fr":"","en":"Transaction costs, market A","es":""},"value":"60","unit":"EUR"},{"label":{"fr":"","en":"Transport costs, market A","es":""},"value":"90","unit":"EUR"},{"label":{"fr":"","en":"Price, market B","es":""},"value":"4150","unit":"EUR"},{"label":{"fr":"","en":"Transaction costs, market B","es":""},"value":"25","unit":"EUR"},{"label":{"fr":"","en":"Transport costs, market B","es":""},"value":"30","unit":"EUR"}],"steps":[{"id":"NET_A","label":{"fr":"","en":"Net amount, market A","es":""},"answer":4050,"tolerance":0,"unit":"EUR"},{"id":"NET_B","label":{"fr":"","en":"Net amount, market B","es":""},"answer":4095,"tolerance":0,"unit":"EUR"},{"id":"NET_MAM","label":{"fr":"","en":"Net amount of the most advantageous market","es":""},"answer":4095,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"NET_A","meaning":{"fr":"","en":"Net amount, market A","es":""},"expression":"a - b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Price, market A","es":""},"value":4200,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Transaction costs, market A","es":""},"value":60,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Transport costs, market A","es":""},"value":90,"unit":"EUR"}],"result":4050,"unit":"EUR"},{"step":"NET_B","meaning":{"fr":"","en":"Net amount, market B","es":""},"expression":"a - b - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Price, market B","es":""},"value":4150,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Transaction costs, market B","es":""},"value":25,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Transport costs, market B","es":""},"value":30,"unit":"EUR"}],"result":4095,"unit":"EUR"}],"rationale":{"fr":"","en":"The most advantageous market is read on the net amount.","es":""},"references":["REF.IFRS13.APPA","REF.IFRS13.25","REF.IFRS13.26"]}},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IFRS13.000038","standard_id":"IFRS13","concept_ids":["IFRS13.MARKET.MOST_ADVANTAGEOUS_MARKET","IFRS13.MARKET.TRANSACTION_COSTS","IFRS13.MARKET.TRANSPORT_COSTS"],"dimension":"APPLICATION","context":"V1_QST.IFRS13.000038","tested_point":"QST.IFRS13.000038","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000004","section_id":"rule-markets"},"references":["IFRS 13","IFRS 13 §25","IFRS 13 §26"],"exercise":{"prompt":{"fr":"","en":"For a lot of copper with no principal market, Estrelle compares two markets. A: price 600, transaction costs 18, transport costs 12. B: price 610, transaction costs 30, transport costs 24. The location of the lot is a characteristic of the lot (case data). What is the fair value of the lot?","es":""},"explanation":{"fr":"","en":"Step 1, choice of market after all costs (IFRS 13, Appendix A): A = 600 − 18 − 12 = 570; B = 610 − 30 − 24 = 556, so A. Step 2, fair value: A's price is not adjusted for transaction costs (IFRS 13, para. 25) but is for transport costs, location being a characteristic (IFRS 13, para. 26): 600 − 12 = 588.","es":""},"common_error":{"fr":"","en":"Confusing the net amount used to select the market with fair value.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"570, the net amount of market A after all costs.","es":""},"correct":false,"feedback":{"fr":"","en":"570 serves to designate the most advantageous market (IFRS 13, Appendix A), but fair value does not deduct transaction costs (IFRS 13, para. 25). It deducts transport costs because location is a characteristic (IFRS 13, para. 26): 600 − 12 = 588. Rule to remember: Costs serve to choose the market; the price is adjusted for transport costs, not transaction costs.","es":""}},{"id":"B","text":{"fr":"","en":"600, the gross price of market A without any adjustment.","es":""},"correct":false,"feedback":{"fr":"","en":"This amount ignores transport costs, whereas location is a characteristic of the lot: the price is adjusted for these costs (IFRS 13, para. 26). Transaction costs stay out of the adjustment (IFRS 13, para. 25). Rule to remember: Costs serve to choose the market; the price is adjusted for transport costs, not transaction costs.","es":""}},{"id":"C","text":{"fr":"","en":"610, the higher gross price of the two markets.","es":""},"correct":false,"feedback":{"fr":"","en":"The most advantageous market is determined after transaction and transport costs: B gives 610 − 30 − 24 = 556, below A's 570 (IFRS 13, Appendix A). The gross price does not designate the market. Rule to remember: Costs serve to choose the market; the price is adjusted for transport costs, not transaction costs.","es":""}},{"id":"D","text":{"fr":"","en":"588, the price of market A less transport costs only.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000039","standard_id":"IFRS13","concept_ids":["IFRS13.MARKET.MOST_ADVANTAGEOUS_MARKET"],"dimension":"ANALYSIS","context":"V1_QST.IFRS13.000039","tested_point":"QST.IFRS13.000039","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000004","section_id":"rule-markets"},"references":["IFRS 13"],"exercise":{"prompt":{"fr":"","en":"To designate the most advantageous market for a lot of cocoa, an analyst compares gross prices: A at 800 (transaction costs 20, transport 10) and B at 810 (transaction costs 45, transport 30). He selects B. What is the error?","es":""},"explanation":{"fr":"","en":"The most advantageous market is the one that maximises the amount received after transaction and transport costs (IFRS 13, Appendix A): A gives 770 and B 735. The analyst compared gross prices. Rule to remember: Compare markets net of costs, not on the gross price.","es":""},"common_error":{"fr":"","en":"Choosing the market without deducting transaction and transport costs.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"He should have added the transaction costs to the prices before comparing.","es":""},"correct":false,"feedback":{"fr":"","en":"Costs are deducted from the amount received, not added (IFRS 13, Appendix A): the most advantageous market maximises the amount received after those costs. Adding them would distort the comparison. Rule to remember: Compare markets net of costs, not on the gross price.","es":""}},{"id":"B","text":{"fr":"","en":"He compares gross prices: after transaction and transport costs, A gives 770 and B 735, so A is the most advantageous.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"He should have looked for a principal market before any comparison, which he did not indicate, before even comparing each market's costs.","es":""},"correct":false,"feedback":{"fr":"","en":"Looking first for a principal market is good practice (IFRS 13, para. 16), but the statement sets it aside: the question concerns how markets are compared, which must be done after costs (IFRS 13, Appendix A). Rule to remember: Compare markets net of costs, not on the gross price.","es":""}},{"id":"D","text":{"fr":"","en":"He should have used the lowest price, out of prudence.","es":""},"correct":false,"feedback":{"fr":"","en":"The most advantageous market maximises the amount received after costs (IFRS 13, Appendix A); prudence does not justify using the lowest amount. The error is the omission of costs in the comparison. Rule to remember: Compare markets net of costs, not on the gross price.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000040","standard_id":"IFRS13","concept_ids":["IFRS13.MARKET.TRANSACTION_COSTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000040","tested_point":"QST.IFRS13.000040","difficulty":"INTERMEDIATE","source":"V1","format":"TRUE_FALSE","estimated_time_s":40,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000004","section_id":"rule-costs"},"references":["IFRS 13 §25"],"exercise":{"prompt":{"fr":"","en":"To obtain the fair value of an asset, the price in the principal market is reduced by the transaction costs the entity would bear in selling it.","es":""},"explanation":{"fr":"","en":"The price in the principal (or most advantageous) market is not adjusted for transaction costs, which are a matter for the standard applicable to the item and are not a characteristic of the asset (IFRS 13, para. 25). Trap: confusing fair value with net proceeds of sale. Rule to remember: Fair value is not reduced by transaction costs.","es":""},"common_error":{"fr":"","en":"Deducting transaction costs from the price to obtain fair value.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000041","standard_id":"IFRS13","concept_ids":["IFRS13.MARKET.TRANSACTION_COSTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000041","tested_point":"QST.IFRS13.000041","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000004","section_id":"rule-costs"},"references":["IFRS 13 §25"],"exercise":{"prompt":{"fr":"","en":"Why is the market price not reduced by transaction costs to set fair value?","es":""},"explanation":{"fr":"","en":"Transaction costs are not a characteristic of the asset: they are a matter for the standard applicable to the item and therefore do not adjust the market price (IFRS 13, para. 25). Rule to remember: Transaction costs: outside fair value, handled by the item's standard.","es":""},"common_error":{"fr":"","en":"Thinking transaction costs refine fair value.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Because they are already included in the quoted market price.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard does not say the costs are included in the quoted price; it states that the price is not adjusted for these costs, which are not a characteristic of the asset (IFRS 13, para. 25). The explanation given invents a mechanism. Rule to remember: Transaction costs: outside fair value, handled by the item's standard.","es":""}},{"id":"B","text":{"fr":"","en":"Because only the buyer bears transaction costs, the seller incurring none in practice in an organised market.","es":""},"correct":false,"feedback":{"fr":"","en":"Nothing in the standard reserves these costs to the buyer; the reason is that they are not a characteristic of the asset and depend on the standard applicable to the item (IFRS 13, para. 25). Rule to remember: Transaction costs: outside fair value, handled by the item's standard.","es":""}},{"id":"C","text":{"fr":"","en":"Because they are not a characteristic of the asset and are a matter for the standard applicable to the item.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Because these costs are negligible by nature.","es":""},"correct":false,"feedback":{"fr":"","en":"The size of the costs is not the reason: they are not a characteristic of the asset and are a matter for the standard applicable to the item (IFRS 13, para. 25). Even if high, they do not adjust the price. Rule to remember: Transaction costs: outside fair value, handled by the item's standard.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000042","standard_id":"IFRS13","concept_ids":["IFRS13.MARKET.TRANSACTION_COSTS","IFRS13.DEFINITION.EXIT_PRICE"],"dimension":"CALCULATION","context":"V1_VG.IFRS13.000002","tested_point":"VG.IFRS13.000002","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000002","section_id":"rule-definition"},"references":["IFRS 13 §25","IFRS 13 §24"],"exercise":{"prompt":{"fr":"","en":"The principal market for a lot of Maréval securities shows a price of {market_price}. By selling it, Maréval would bear {transaction_costs} of transaction costs. Compute the fair value of the lot and the net proceeds Maréval would receive.","es":""},"explanation":{"fr":"","en":"Approach: the principal market price is not adjusted for transaction costs (IFRS 13, para. 25), so fair value is 500,000. The net proceeds of sale, a separate piece of information, are 500,000 − 12,000 = 488,000. Trap: using 488,000 as fair value. Rule to remember: Fair value is the market price, without transaction costs.","es":""},"common_error":{"fr":"","en":"Subtracting transaction costs from the price to obtain fair value.","es":""},"format":"CALCULATION","placeholders":[{"id":"market_price","value":"500000","unit":"EUR"},{"id":"transaction_costs","value":"12000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Principal market price","es":""},"value":"500000","unit":"EUR"},{"label":{"fr":"","en":"Transaction costs","es":""},"value":"12000","unit":"EUR"}],"steps":[{"id":"FAIR_VALUE","label":{"fr":"","en":"Fair value of the lot","es":""},"answer":500000,"tolerance":0,"unit":"EUR"},{"id":"NET_PROCEEDS","label":{"fr":"","en":"Net proceeds of sale","es":""},"answer":488000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"NET_PROCEEDS","meaning":{"fr":"","en":"Net proceeds of sale","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Principal market price","es":""},"value":500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Transaction costs","es":""},"value":12000,"unit":"EUR"}],"result":488000,"unit":"EUR"}],"rationale":{"fr":"","en":"Fair value is the market price, without transaction costs.","es":""},"references":["REF.IFRS13.25"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000043","standard_id":"IFRS13","concept_ids":["IFRS13.MARKET.TRANSACTION_COSTS","IFRS13.DEFINITION.EXIT_PRICE"],"dimension":"CALCULATION","context":"V1_VG.IFRS13.000002","tested_point":"VG.IFRS13.000002","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000002","section_id":"rule-definition"},"references":["IFRS 13 §25","IFRS 13 §24"],"exercise":{"prompt":{"fr":"","en":"An industrial press of Norvaux is quoted at {market_price} in its principal market. Selling it would involve transaction costs of {transaction_costs}. Determine the fair value of the press and the net proceeds of sale.","es":""},"explanation":{"fr":"","en":"Approach: fair value takes the principal market price without reducing it by transaction costs (IFRS 13, para. 25): 1,850,000. The net proceeds of sale are separate information: 1,850,000 − 74,000 = 1,776,000. Trap: mixing up the two amounts. Rule to remember: Fair value = market price; net proceeds = price less costs.","es":""},"common_error":{"fr":"","en":"Using the net proceeds as fair value.","es":""},"format":"CALCULATION","placeholders":[{"id":"market_price","value":"1850000","unit":"EUR"},{"id":"transaction_costs","value":"74000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Principal market price","es":""},"value":"1850000","unit":"EUR"},{"label":{"fr":"","en":"Transaction costs","es":""},"value":"74000","unit":"EUR"}],"steps":[{"id":"FAIR_VALUE","label":{"fr":"","en":"Fair value of the press","es":""},"answer":1850000,"tolerance":0,"unit":"EUR"},{"id":"NET_PROCEEDS","label":{"fr":"","en":"Net proceeds of sale","es":""},"answer":1776000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"NET_PROCEEDS","meaning":{"fr":"","en":"Net proceeds of sale","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Principal market price","es":""},"value":1850000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Transaction costs","es":""},"value":74000,"unit":"EUR"}],"result":1776000,"unit":"EUR"}],"rationale":{"fr":"","en":"Fair value = market price; net proceeds = price less costs.","es":""},"references":["REF.IFRS13.25"]}},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IFRS13.000044","standard_id":"IFRS13","concept_ids":["IFRS13.MARKET.TRANSACTION_COSTS","IFRS13.MARKET.TRANSPORT_COSTS","IFRS13.MARKET.MOST_ADVANTAGEOUS_MARKET"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000044","tested_point":"QST.IFRS13.000044","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000004","section_id":"rule-markets"},"references":["IFRS 13 §25","IFRS 13 §26","IFRS 13"],"exercise":{"prompt":{"fr":"","en":"Which statements about transaction and transport costs are correct? (Several answers.)","es":""},"explanation":{"fr":"","en":"The price is not adjusted for transaction costs (IFRS 13, para. 25); these do not include transport costs, which adjust the price if location is a characteristic (IFRS 13, para. 26); the choice of the most advantageous market is made after both (IFRS 13, Appendix A).","es":""},"common_error":{"fr":"","en":"Treating transaction costs and transport costs the same way.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Transport costs are always ignored, because they are transaction costs.","es":""},"correct":false,"feedback":{"fr":"","en":"Transaction costs do not include transport costs (IFRS 13, para. 26); if location is a characteristic of the asset, the price is adjusted for the cost of transport to the market. They are therefore not ignored in that case. Rule to remember: Two categories of costs, three roles: market selection, price adjustment, exclusion.","es":""}},{"id":"B","text":{"fr":"","en":"To designate the most advantageous market, transaction and transport costs are taken into account.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Transaction costs are a characteristic of the asset.","es":""},"correct":false,"feedback":{"fr":"","en":"It is the opposite: transaction costs are not a characteristic of the asset or liability (IFRS 13, para. 25), which explains why they do not adjust the price. Rule to remember: Two categories of costs, three roles: market selection, price adjustment, exclusion.","es":""}},{"id":"D","text":{"fr":"","en":"The principal market price is not adjusted for transaction costs.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"Transaction costs do not include transport costs.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000045","standard_id":"IFRS13","concept_ids":["IFRS13.MARKET.TRANSPORT_COSTS","IFRS13.MARKET.TRANSACTION_COSTS"],"dimension":"CALCULATION","context":"V1_VG.IFRS13.000003","tested_point":"VG.IFRS13.000003","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000004","section_id":"rule-costs"},"references":["IFRS 13 §26","IFRS 13 §25"],"exercise":{"prompt":{"fr":"","en":"Quérande's natural gas is stored at a remote site; location is a characteristic of the asset (case data). The market price is {market_price}; delivery to the market would cost {transport_costs} and transaction costs would be {transaction_costs}. Compute the fair value.","es":""},"explanation":{"fr":"","en":"Approach: location being a characteristic, the price is adjusted for the cost of transport to the market (IFRS 13, para. 26); transaction costs are not (IFRS 13, para. 25). Fair value = 240,000 − 15,000 = 225,000. Trap: also deducting the 6,000 of transaction costs (219,000). Rule to remember: Transport is deducted if location is a characteristic; transaction costs are not.","es":""},"common_error":{"fr":"","en":"Deducting transaction costs together with transport costs.","es":""},"format":"CALCULATION","placeholders":[{"id":"market_price","value":"240000","unit":"EUR"},{"id":"transport_costs","value":"15000","unit":"EUR"},{"id":"transaction_costs","value":"6000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Market price","es":""},"value":"240000","unit":"EUR"},{"label":{"fr":"","en":"Transport costs to the market","es":""},"value":"15000","unit":"EUR"},{"label":{"fr":"","en":"Transaction costs","es":""},"value":"6000","unit":"EUR"}],"steps":[{"id":"FAIR_VALUE","label":{"fr":"","en":"Fair value","es":""},"answer":225000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"FAIR_VALUE","meaning":{"fr":"","en":"Fair value","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Market price","es":""},"value":240000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Transport costs to the market","es":""},"value":15000,"unit":"EUR"}],"result":225000,"unit":"EUR"}],"rationale":{"fr":"","en":"Transport is deducted if location is a characteristic; transaction costs are not.","es":""},"references":["REF.IFRS13.26","REF.IFRS13.25"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000046","standard_id":"IFRS13","concept_ids":["IFRS13.MARKET.TRANSPORT_COSTS","IFRS13.MARKET.TRANSACTION_COSTS"],"dimension":"CALCULATION","context":"V1_VG.IFRS13.000003","tested_point":"VG.IFRS13.000003","difficulty":"INTERMEDIATE","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000004","section_id":"rule-costs"},"references":["IFRS 13 §26","IFRS 13 §25"],"exercise":{"prompt":{"fr":"","en":"Pélerande's silver ingots are held in a remote vault; their location is a characteristic of the asset (case data). Market price: {market_price}. Transport costs to the market: {transport_costs}. Transaction costs: {transaction_costs}. Compute the fair value.","es":""},"explanation":{"fr":"","en":"Approach: location is a characteristic, so the price is reduced by transport costs (IFRS 13, para. 26) but not by transaction costs (IFRS 13, para. 25): 1,180,000 − 38,000 = 1,142,000. Trap: arriving at 1,117,000 by also deducting 25,000. Rule to remember: Transport costs adjust the price when location matters; transaction costs do not.","es":""},"common_error":{"fr":"","en":"Ignoring the transport cost or adding the transaction cost to it.","es":""},"format":"CALCULATION","placeholders":[{"id":"market_price","value":"1180000","unit":"EUR"},{"id":"transport_costs","value":"38000","unit":"EUR"},{"id":"transaction_costs","value":"25000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Market price","es":""},"value":"1180000","unit":"EUR"},{"label":{"fr":"","en":"Transport costs to the market","es":""},"value":"38000","unit":"EUR"},{"label":{"fr":"","en":"Transaction costs","es":""},"value":"25000","unit":"EUR"}],"steps":[{"id":"FAIR_VALUE","label":{"fr":"","en":"Fair value","es":""},"answer":1142000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"FAIR_VALUE","meaning":{"fr":"","en":"Fair value","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Market price","es":""},"value":1180000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Transport costs to the market","es":""},"value":38000,"unit":"EUR"}],"result":1142000,"unit":"EUR","rationale":{"fr":"","en":"Approach: location is a characteristic, so the price is reduced by transport costs (IFRS 13, para. 26) but not by transaction costs (IFRS 13, para. 25): 1,180,000 − 38,000 = 1,142,000.","es":""}}],"rationale":{"fr":"","en":"Transport costs adjust the price when location matters; transaction costs do not.","es":""},"references":["REF.IFRS13.26","REF.IFRS13.25"]}},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IFRS13.000047","standard_id":"IFRS13","concept_ids":["IFRS13.MARKET.TRANSPORT_COSTS"],"dimension":"ANALYSIS","context":"V1_QST.IFRS13.000047","tested_point":"QST.IFRS13.000047","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000004","section_id":"rule-costs"},"references":["IFRS 13 §26"],"exercise":{"prompt":{"fr":"","en":"For wine barrels stored in a cellar far from the market, Cortelle uses the quoted market price as fair value, with no adjustment, although location is a characteristic of the barrels (case data). What is the error?","es":""},"explanation":{"fr":"","en":"When location is a characteristic of the asset, the market price is adjusted for the cost of transport to the market (IFRS 13, para. 26); Cortelle used the quoted price without that adjustment. Rule to remember: Location matters: the cost of transport to the market reduces the price.","es":""},"common_error":{"fr":"","en":"Omitting transport costs for an asset that must be moved to the market.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It should have reduced the price by transaction costs.","es":""},"correct":false,"feedback":{"fr":"","en":"Transaction costs do not adjust the price (IFRS 13, para. 25). The missing adjustment concerns transport costs, because location is a characteristic of the asset (IFRS 13, para. 26). Rule to remember: Location matters: the cost of transport to the market reduces the price.","es":""}},{"id":"B","text":{"fr":"","en":"It fails to reduce the price by the cost of transport to the market.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It should have added the transport costs to the quoted price.","es":""},"correct":false,"feedback":{"fr":"","en":"The direction of the adjustment is reversed: moving the asset to the market has a cost, which reduces the price received at its current location (IFRS 13, para. 26). Adding the cost would overstate the asset. Rule to remember: Location matters: the cost of transport to the market reduces the price.","es":""}},{"id":"D","text":{"fr":"","en":"It should have chosen a market other than the one of the quoted price.","es":""},"correct":false,"feedback":{"fr":"","en":"The choice of market is not at issue in the statement; the flaw is the absence of an adjustment for transport costs to that market, location being a characteristic (IFRS 13, para. 26). Rule to remember: Location matters: the cost of transport to the market reduces the price.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000048","standard_id":"IFRS13","concept_ids":["IFRS13.NONFIN.HIGHEST_AND_BEST_USE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000048","tested_point":"QST.IFRS13.000048","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000005","section_id":"rule-hbu"},"references":["IFRS 13 §28","IFRS 13 §27"],"exercise":{"prompt":{"fr":"","en":"Among which uses is the highest and best use of a non-financial asset assessed?","es":""},"explanation":{"fr":"","en":"For a non-financial asset, the highest and best use is chosen among physically possible, legally permissible and financially feasible uses (IFRS 13, para. 28), from the market participants' viewpoint (IFRS 13, para. 27).","es":""},"common_error":{"fr":"","en":"Retaining a use without checking its three conditions.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Among only the uses the entity already makes.","es":""},"correct":false,"feedback":{"fr":"","en":"The highest and best use is assessed among the uses that are physically possible, legally permissible and financially feasible (IFRS 13, para. 28), from the market participants' viewpoint (para. 27); it is not limited to the uses the entity already makes. Rule to remember: Three filters: possible, permitted, feasible.","es":""}},{"id":"B","text":{"fr":"","en":"Among only the financially feasible uses, whatever their legality.","es":""},"correct":false,"feedback":{"fr":"","en":"Financial feasibility is only one of the three criteria: the use must also be physically possible and legally permissible (IFRS 13, para. 28). Ignoring legality would lead to an unrealistic value. Rule to remember: Three filters: possible, permitted, feasible.","es":""}},{"id":"C","text":{"fr":"","en":"Among all conceivable uses, including those the law prohibits.","es":""},"correct":false,"feedback":{"fr":"","en":"The highest and best use is assessed among physically possible, legally permissible and financially feasible uses (IFRS 13, para. 28). A use prohibited by law is ruled out from the start. Rule to remember: Three filters: possible, permitted, feasible.","es":""}},{"id":"D","text":{"fr":"","en":"Among the physically possible, legally permissible and financially feasible uses.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000050","standard_id":"IFRS13","concept_ids":["IFRS13.NONFIN.HIGHEST_AND_BEST_USE"],"dimension":"CALCULATION","context":"V1_QST.IFRS13.000050","tested_point":"QST.IFRS13.000050","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000005","section_id":"rule-hbu"},"references":["IFRS 13 §28","IFRS 13 §27","IFRS 13 §29"],"exercise":{"prompt":{"fr":"","en":"Brévanne's land is used as an industrial depot, with a value of {value_current}. Market participants could use it for residential purposes: market value of that use {value_residential}, before deducting conversion costs of {conversion_costs}. The three conditions (physically possible, legally permissible, financially feasible) are met for both uses (case data). Compute the net value of the residential use and then the value under the highest and best use.","es":""},"explanation":{"fr":"","en":"Approach: compare the uses meeting the three conditions (IFRS 13, para. 28), from the market participants' viewpoint (IFRS 13, para. 27). Net residential use: 1,850,000 − 420,000 = 1,430,000; it exceeds the industrial use (1,200,000), so the value retained is 1,430,000. Trap: keeping the current use (1,200,000) despite a permitted use of higher value in the case (presumption of current use overturned, IFRS 13, para. 29), or forgetting the conversion costs (1,850,000). Rule to remember: Compare the net-of-conversion values of the admissible uses and retain the highest.","es":""},"common_error":{"fr":"","en":"Keeping the current use without examining a better use by market participants.","es":""},"format":"CALCULATION","placeholders":[{"id":"value_current","value":"1200000","unit":"EUR"},{"id":"value_residential","value":"1850000","unit":"EUR"},{"id":"conversion_costs","value":"420000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Value under current industrial use","es":""},"value":"1200000","unit":"EUR"},{"label":{"fr":"","en":"Market value of residential use","es":""},"value":"1850000","unit":"EUR"},{"label":{"fr":"","en":"Conversion costs","es":""},"value":"420000","unit":"EUR"}],"steps":[{"id":"NET_RESIDENTIAL","label":{"fr":"","en":"Net value of residential use","es":""},"answer":1430000,"tolerance":0,"unit":"EUR"},{"id":"HBU_VALUE","label":{"fr":"","en":"Value under the highest and best use","es":""},"answer":1430000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"NET_RESIDENTIAL","meaning":{"fr":"","en":"Net value of residential use","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Market value of residential use","es":""},"value":1850000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Conversion costs","es":""},"value":420000,"unit":"EUR"}],"result":1430000,"unit":"EUR"}],"rationale":{"fr":"","en":"Compare the net-of-conversion values of the admissible uses and retain the highest.","es":""},"references":["REF.IFRS13.28","REF.IFRS13.27","REF.IFRS13.29"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000051","standard_id":"IFRS13","concept_ids":["IFRS13.NONFIN.HIGHEST_AND_BEST_USE"],"dimension":"APPLICATION","context":"V1_QST.IFRS13.000051","tested_point":"QST.IFRS13.000051","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000005","section_id":"rule-hbu"},"references":["IFRS 13 §28","IFRS 13 §29","IFRS 13 §27"],"exercise":{"prompt":{"fr":"","en":"Calvenne's land is zoned industrial; this zoning rule applies to every market participant (case data). Net values of each use: current industrial depot 1,200,000; logistics warehouse, permitted and feasible, 1,350,000; housing, 1,850,000 but prohibited by zoning. Which value reflects the highest and best use?","es":""},"explanation":{"fr":"","en":"Physically possible, legally permissible and financially feasible uses are compared (IFRS 13, para. 28), from the participants' viewpoint (IFRS 13, para. 29): the warehouse (1,350,000) is the most valuable of the admissible uses. The current use is presumed to be the highest and best use unless the market or other factors indicate a different use (IFRS 13, para. 29); here, the case gives a permitted and feasible use worth more than the current use (1,200,000). The prohibited housing is set aside.","es":""},"common_error":{"fr":"","en":"Retaining a use that is not legally permitted.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"1,525,000, the average of the warehouse and housing.","es":""},"correct":false,"feedback":{"fr":"","en":"No average figures in the approach, and housing, legally prohibited, cannot enter it (IFRS 13, para. 28). The highest and best use is a single admissible use (IFRS 13, para. 29). Rule to remember: First filter the admissible uses, then retain the most valuable.","es":""}},{"id":"B","text":{"fr":"","en":"1,850,000, the highest value of the three uses, since the market price of housing remains the most attractive.","es":""},"correct":false,"feedback":{"fr":"","en":"Housing is prohibited by zoning: the use is not legally permissible and cannot be retained (IFRS 13, para. 28). The highest value is retained only among admissible uses. Rule to remember: First filter the admissible uses, then retain the most valuable.","es":""}},{"id":"C","text":{"fr":"","en":"1,350,000, the logistics warehouse, the highest value among permitted and feasible uses.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"1,200,000, the land's current industrial use.","es":""},"correct":false,"feedback":{"fr":"","en":"The current use is presumed to be the highest and best use, unless the market or other factors indicate a different use (IFRS 13, para. 29); here the case gives a permitted and feasible use of higher value (warehouse, 1,350,000). Rule to remember: First filter the admissible uses, then retain the most valuable.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000053","standard_id":"IFRS13","concept_ids":["IFRS13.NONFIN.VALUATION_PREMISE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000053","tested_point":"QST.IFRS13.000053","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000005","section_id":"rule-premise"},"references":["IFRS 13 §33","IFRS 13 §31"],"exercise":{"prompt":{"fr":"","en":"Under the stand-alone premise, what price is used for the non-financial asset?","es":""},"explanation":{"fr":"","en":"The highest and best use leads to a valuation premise: under the stand-alone premise, the price is that of a sale to a participant who would use the asset alone; under the combined premise, the asset is assumed to be used with its complementary assets (IFRS 13, para. 31).","es":""},"common_error":{"fr":"","en":"Confusing the stand-alone and combined premises.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The total flows the entity will derive from the asset by operating it in its own group.","es":""},"correct":false,"feedback":{"fr":"","en":"A flow derived from operating in the entity's own group concerns an entity-specific use, not the stand-alone premise: the latter concerns a participant who uses the asset alone (IFRS 13, para. 31). Rule to remember: Stand-alone: the participant uses the asset alone; combined: with other assets.","es":""}},{"id":"B","text":{"fr":"","en":"The price of a sale to a participant who would use it in combination with its other assets.","es":""},"correct":false,"feedback":{"fr":"","en":"That is the combined-use premise, not the stand-alone one (IFRS 13, para. 31): under the stand-alone premise, the participant uses the asset alone, without complementary assets. Rule to remember: Stand-alone: the participant uses the asset alone; combined: with other assets.","es":""}},{"id":"C","text":{"fr":"","en":"The price of a sale to a participant who would use it alone, without complementary assets.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The price the entity paid to acquire it.","es":""},"correct":false,"feedback":{"fr":"","en":"The acquisition price is a past entry price, unrelated to the valuation premises: the stand-alone premise concerns a sale to a participant who uses the asset alone (IFRS 13, para. 31). Rule to remember: Stand-alone: the participant uses the asset alone; combined: with other assets.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000056","standard_id":"IFRS13","concept_ids":["IFRS13.LIABILITY.TRANSFER_ASSUMPTION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000056","tested_point":"QST.IFRS13.000056","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000006","section_id":"rule-transfer"},"references":["IFRS 13 §34","IFRS 13 §35"],"exercise":{"prompt":{"fr":"","en":"What assumption does IFRS 13 use to measure an entity's liability at fair value?","es":""},"explanation":{"fr":"","en":"For a liability, fair value is the price paid to transfer it to a market participant who takes it over as it stands, the liability remaining in place (IFRS 13). The transfer assumption holds even where no observable transfer market exists (IFRS 13, para. 35). Rule to remember: Liability = transfer to a third party, not settlement with the creditor.","es":""},"common_error":{"fr":"","en":"Measuring the liability at the amount of settlement with the counterparty.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The liability is kept by the entity until it matures, with no transfer.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard's assumption is precisely a transfer to a market participant (IFRS 13); the entity keeping the liability until maturity is not the assumption retained. Rule to remember: Liability = transfer to a third party, not settlement with the creditor.","es":""}},{"id":"B","text":{"fr":"","en":"The liability is settled with the creditor at the measurement date, extinguishing it.","es":""},"correct":false,"feedback":{"fr":"","en":"The measurement does not assume settlement with the counterparty: the liability is not assumed extinguished, only the transfer to a third party defines the price (IFRS 13). Rule to remember: Liability = transfer to a third party, not settlement with the creditor.","es":""}},{"id":"C","text":{"fr":"","en":"The liability is cancelled by the entity at its nominal value.","es":""},"correct":false,"feedback":{"fr":"","en":"A cancellation at nominal value is not the standard's assumption, which uses a transfer to a market participant with the liability remaining in place (IFRS 13). Nominal value is not a transfer price. Rule to remember: Liability = transfer to a third party, not settlement with the creditor.","es":""}},{"id":"D","text":{"fr":"","en":"The liability is transferred to a market participant and remains outstanding, unsettled.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000057","standard_id":"IFRS13","concept_ids":["IFRS13.LIABILITY.TRANSFER_ASSUMPTION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000057","tested_point":"QST.IFRS13.000057","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000006","section_id":"rule-transfer"},"references":["IFRS 13 §34","IFRS 13 §35"],"exercise":{"prompt":{"fr":"","en":"Which statements about the fair value measurement of a liability are correct? (Several answers.)","es":""},"explanation":{"fr":"","en":"Measuring a liability assumes a transfer to a third party, the liability remaining in place (IFRS 13, para. 34), even without an observable transfer market (IFRS 13, para. 35), and not a settlement with the counterparty (IFRS 13, para. 34).","es":""},"common_error":{"fr":"","en":"Believing a liability without a transfer market escapes fair value.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Without an observable transfer market, a liability cannot be measured at fair value.","es":""},"correct":false,"feedback":{"fr":"","en":"The absence of a transfer market does not prevent measurement: the transfer assumption still holds and one relies on what a participant holding the item as an asset would accept (IFRS 13, para. 35). Rule to remember: Transfer to a third party, even without an observable market; no settlement.","es":""}},{"id":"B","text":{"fr":"","en":"The price is the amount negotiated with the creditor to extinguish the debt.","es":""},"correct":false,"feedback":{"fr":"","en":"That amount corresponds to a settlement with the counterparty, excluded from the assumption: the price is defined by transfer to a third party (IFRS 13, para. 34). The two amounts may differ. Rule to remember: Transfer to a third party, even without an observable market; no settlement.","es":""}},{"id":"C","text":{"fr":"","en":"The liability is assumed to be transferred to a market participant and remains in place.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The liability is not assumed extinguished by settlement with the counterparty.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The transfer assumption holds even without an observable transfer market.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000058","standard_id":"IFRS13","concept_ids":["IFRS13.LIABILITY.TRANSFER_ASSUMPTION"],"dimension":"ANALYSIS","context":"V1_QST.IFRS13.000058","tested_point":"QST.IFRS13.000058","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000006","section_id":"rule-transfer"},"references":["IFRS 13 §34"],"exercise":{"prompt":{"fr":"","en":"For the fair value of its warranty provision, Brasselle uses the amount it would have to pay the customer to extinguish the obligation, on the grounds that \"the liability thereby disappears from our books\". What is the error?","es":""},"explanation":{"fr":"","en":"The price of a liability is defined by transfer to a third party taking over the obligation, the liability remaining in place (IFRS 13, para. 34); settlement with the counterparty is set aside (IFRS 13, para. 34). Rule to remember: No settlement with the counterparty to set the fair value of a liability.","es":""},"common_error":{"fr":"","en":"Measuring the liability at the settlement amount with the counterparty.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The nominal value of the provision should be used with no adjustment.","es":""},"correct":false,"feedback":{"fr":"","en":"Nominal value is not the transfer price a market participant would require (IFRS 13, para. 34). Replacing a settlement amount with nominal does not correct the wrong assumption. Rule to remember: No settlement with the counterparty to set the fair value of a liability.","es":""}},{"id":"B","text":{"fr":"","en":"The standard assumes a transfer to a third party, the liability remaining in place, not a settlement with the counterparty.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The customer should have been the reference market participant.","es":""},"correct":false,"feedback":{"fr":"","en":"The customer is the counterparty: reasoning by settlement with the counterparty is precisely excluded. The price is defined by a transfer to a third party (IFRS 13, para. 34). Rule to remember: No settlement with the counterparty to set the fair value of a liability.","es":""}},{"id":"D","text":{"fr":"","en":"A warranty provision does not fall within the scope of fair value measurement, for lack of a market in which it trades.","es":""},"correct":false,"feedback":{"fr":"","en":"The sentence does not raise this point: the statement presupposes fair value measurement, and the error concerns the assumption used. The assumption must be a transfer to a market participant (IFRS 13, para. 34). Rule to remember: No settlement with the counterparty to set the fair value of a liability.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000059","standard_id":"IFRS13","concept_ids":["IFRS13.LIABILITY.TRANSFER_ASSUMPTION"],"dimension":"APPLICATION","context":"V1_QST.IFRS13.000059","tested_point":"QST.IFRS13.000059","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000006","section_id":"rule-transfer"},"references":["IFRS 13 §35","IFRS 13 §34"],"exercise":{"prompt":{"fr":"","en":"Zendrale has a site restoration obligation. No transfer market is observable. The regulator would accept a settlement of 900; a market participant taking over the obligation would require 1,050 according to the estimate made (case data). Which amount does Zendrale use for the fair value of the liability?","es":""},"explanation":{"fr":"","en":"The transfer assumption applies even without an observable market (IFRS 13, para. 35) and excludes settlement with the counterparty (IFRS 13, para. 34): the liability is measured at 1,050, what a participant taking over the obligation would require (IFRS 13, para. 34).","es":""},"common_error":{"fr":"","en":"Using a settlement amount instead of a transfer price.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"975, the average of the two amounts.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard provides no average with the settlement amount, which is excluded: only the transfer to a market participant defines the price (IFRS 13, para. 34). Rule to remember: The relevant price is the taker-over's, not the regulator's.","es":""}},{"id":"B","text":{"fr":"","en":"No amount, for lack of an observable transfer market, as long as no agreement is reached with the regulator.","es":""},"correct":false,"feedback":{"fr":"","en":"The absence of an observable market does not remove the measurement: the transfer assumption still holds and one relies on what a participant would accept (IFRS 13, para. 35). Rule to remember: The relevant price is the taker-over's, not the regulator's.","es":""}},{"id":"C","text":{"fr":"","en":"1,050, the price a market participant would require to take over the obligation.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"900, the settlement amount accepted by the regulator.","es":""},"correct":false,"feedback":{"fr":"","en":"Settlement with the counterparty is not the standard's assumption: the liability is not assumed extinguished, only transfer to a third party defines the price (IFRS 13, para. 34). Fair value is therefore based on 1,050. Rule to remember: The relevant price is the taker-over's, not the regulator's.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000060","standard_id":"IFRS13","concept_ids":["IFRS13.LIABILITY.HELD_BY_OTHER_PARTY_AS_ASSET"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000060","tested_point":"QST.IFRS13.000060","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000006","section_id":"rule-pricing"},"references":["IFRS 13 §37","IFRS 13 §38","IFRS 13 §39"],"exercise":{"prompt":{"fr":"","en":"No quoted price exists for the transfer of one of the entity's liabilities, but an identical item, held as an asset by another party, is quoted in an active market. What does the entity do to measure its liability?","es":""},"explanation":{"fr":"","en":"The measurement takes the viewpoint of the party holding the item as an asset (IFRS 13, para. 37): that asset's quoted price in an active market is used (IFRS 13, para. 38) and is adjusted only for factors specific to the asset that do not apply to the liability (IFRS 13, para. 39).","es":""},"common_error":{"fr":"","en":"Not using the price of the asset held by a third party.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It uses this price or adjusts it where necessary.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It ignores this price, because it concerns an asset and not a liability.","es":""},"correct":false,"feedback":{"fr":"","en":"This price is not set aside: without a transfer price, the viewpoint of the party holding the item as an asset is taken (IFRS 13, para. 37) and its quoted price in an active market is used (IFRS 13, para. 38).","es":""}},{"id":"C","text":{"fr":"","en":"It replaces this price with the settlement amount with the creditor.","es":""},"correct":false,"feedback":{"fr":"","en":"Settlement with the counterparty is not the standard's assumption (IFRS 13, para. 34); the quoted price of the asset held by the third party is used (IFRS 13, para. 38).","es":""}},{"id":"D","text":{"fr":"","en":"It waits for a market specific to liabilities to appear before measuring.","es":""},"correct":false,"feedback":{"fr":"","en":"Waiting is not an option: the holder's viewpoint (IFRS 13, para. 37) already provides a usable quoted price (IFRS 13, para. 38).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000061","standard_id":"IFRS13","concept_ids":["IFRS13.LIABILITY.HELD_BY_OTHER_PARTY_AS_ASSET"],"dimension":"APPLICATION","context":"V1_QST.IFRS13.000061","tested_point":"QST.IFRS13.000061","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000006","section_id":"rule-pricing"},"references":["IFRS 13 §39","IFRS 13 §37"],"exercise":{"prompt":{"fr":"","en":"Pelisanne issued a bond. A third party holds an identical security as an asset, quoted at 98 per 100 of nominal. This price includes a feature specific to the asset held that does not apply to the corresponding liability and that raises the price by 3 (case data). Which price does Pelisanne use for its liability, per 100 of nominal?","es":""},"explanation":{"fr":"","en":"One starts from the quoted price of the identical item held as an asset (IFRS 13, para. 37), then adjusts it for characteristics specific to the asset that do not apply to the liability (IFRS 13, para. 39): 98 − 3 = 95 per 100 of nominal.","es":""},"common_error":{"fr":"","en":"Carrying over the price of the asset held by the third party without adjustment.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"101, the quoted price plus the effect of 3.","es":""},"correct":false,"feedback":{"fr":"","en":"The direction of the adjustment is reversed: the feature raises the asset's price by 3 without concerning the liability, so it is removed (IFRS 13, para. 39). Adding it would double its effect instead of cancelling it. Rule to remember: Holder's price, then removal of what does not concern the liability.","es":""}},{"id":"B","text":{"fr":"","en":"100, the nominal value, because the liability is repaid at par, without regard to the quoted price of the asset.","es":""},"correct":false,"feedback":{"fr":"","en":"Nominal value is not the transfer price: fair value is based on the quoted price for the item held as an asset, adjusted (IFRS 13, paras. 37 and 39). Repayment at par does not replace that price. Rule to remember: Holder's price, then removal of what does not concern the liability.","es":""}},{"id":"C","text":{"fr":"","en":"98, the quoted price with no adjustment.","es":""},"correct":false,"feedback":{"fr":"","en":"The holder's price is adjusted for characteristics specific to the asset held that do not apply to the liability (IFRS 13, para. 39). Carrying 98 unadjusted leaves in the liability an element that does not concern it. Rule to remember: Holder's price, then removal of what does not concern the liability.","es":""}},{"id":"D","text":{"fr":"","en":"95, the quoted price less the effect of 3 of the feature specific to the asset.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000062","standard_id":"IFRS13","concept_ids":["IFRS13.LIABILITY.NOT_HELD_BY_OTHER_PARTY_AS_ASSET"],"dimension":"CALCULATION","context":"V1_QST.IFRS13.000062","tested_point":"QST.IFRS13.000062","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000006","section_id":"rule-pricing"},"references":["IFRS 13 §41","IFRS 13 §40"],"exercise":{"prompt":{"fr":"","en":"Kerlane has a dismantling obligation for which no quoted price exists and which no third party holds as an asset. A participant who would assume the obligation would bear an expected outflow of {expected_outflow} in {years} years; the discount rate it would use, including its risk compensation margin, is {rate}% (case data). Compute the fair value of the liability using present value.","es":""},"explanation":{"fr":"","en":"Approach: with no quoted price and no third party holding the item as an asset, one measures with a technique from the viewpoint of a participant assuming the obligation (IFRS 13, para. 40), for example the present value of outflows with a risk-compensation margin (IFRS 13, para. 41). 1,331,000 ÷ 1.10³ = 1,331,000 ÷ 1.331 = 1,000,000. Trap: discounting without the participant's margin. Rule to remember: Present value is computed at the rate that includes the participant's compensation.","es":""},"common_error":{"fr":"","en":"Omitting the compensation a participant would require to assume the obligation.","es":""},"format":"CALCULATION","placeholders":[{"id":"expected_outflow","value":"1331000","unit":"EUR"},{"id":"years","value":"3","unit":"YEARS"},{"id":"rate","value":"10","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Expected outflow","es":""},"value":"1331000","unit":"EUR"},{"label":{"fr":"","en":"Years before the outflow","es":""},"value":"3","unit":"YEARS"},{"label":{"fr":"","en":"Discount rate including the margin","es":""},"value":"10","unit":"PERCENT"}],"steps":[{"id":"FAIR_VALUE","label":{"fr":"","en":"Fair value of the liability","es":""},"answer":1000000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"FAIR_VALUE","meaning":{"fr":"","en":"Fair value of the liability","es":""},"expression":"a / (1 + b)^3","variables":[{"symbol":"a","meaning":{"fr":"","en":"Expected outflow","es":""},"value":1331000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Discount rate including the margin","es":""},"value":10,"unit":"PERCENT"}],"result":1000000,"unit":"EUR"}],"rationale":{"fr":"","en":"Present value is computed at the rate that includes the participant's compensation.","es":""},"references":["REF.IFRS13.41","REF.IFRS13.40"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000063","standard_id":"IFRS13","concept_ids":["IFRS13.LIABILITY.NOT_HELD_BY_OTHER_PARTY_AS_ASSET"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000063","tested_point":"QST.IFRS13.000063","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000006","section_id":"rule-pricing"},"references":["IFRS 13 §40","IFRS 13 §41"],"exercise":{"prompt":{"fr":"","en":"No quoted price exists for the transfer of the liability and no third party holds it as an asset. How does the entity measure it?","es":""},"explanation":{"fr":"","en":"With no quoted price and no third party holding the item as an asset, the liability is measured by a valuation technique from the viewpoint of a participant who assumes the obligation (IFRS 13, para. 40), for example a present value of outflows with a compensation margin (IFRS 13, para. 41).","es":""},"common_error":{"fr":"","en":"Carrying the book amount instead of applying a valuation technique.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It gives up fair value measurement and replaces it with a provision.","es":""},"correct":false,"feedback":{"fr":"","en":"The absence of a price does not remove the need to measure: a valuation technique must be used from the viewpoint of a participant who assumes the obligation (IFRS 13, para. 40). Rule to remember: Without a price, model the taker-over's viewpoint.","es":""}},{"id":"B","text":{"fr":"","en":"It uses the amount the entity itself would spend to perform the obligation, with no margin or third-party viewpoint.","es":""},"correct":false,"feedback":{"fr":"","en":"The technique takes the viewpoint of a participant who would assume the obligation, with the outflows it would expect to bear and a compensation margin (IFRS 13, paras. 40 and 41), not the entity's own costs alone. Rule to remember: Without a price, model the taker-over's viewpoint.","es":""}},{"id":"C","text":{"fr":"","en":"It uses the amount recognised on the balance sheet without adjustment.","es":""},"correct":false,"feedback":{"fr":"","en":"The carrying amount is not a market measurement: with no quoted price and no holder as an asset, a technique is applied from the viewpoint of a participant who assumes the obligation (IFRS 13, para. 40). Rule to remember: Without a price, model the taker-over's viewpoint.","es":""}},{"id":"D","text":{"fr":"","en":"It applies a valuation technique from the viewpoint of a market participant who assumes the obligation.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000064","standard_id":"IFRS13","concept_ids":["IFRS13.LIABILITY.NOT_HELD_BY_OTHER_PARTY_AS_ASSET"],"dimension":"ANALYSIS","context":"V1_QST.IFRS13.000064","tested_point":"QST.IFRS13.000064","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000006","section_id":"rule-pricing"},"references":["IFRS 13 §41","IFRS 13 §40"],"exercise":{"prompt":{"fr":"","en":"For a clean-up obligation with no quoted price, an analyst computes the present value of the outflows Fontvane expects to bear, with no margin added, on the grounds that \"Fontvane asks for no compensation for its own debt\". What is the error?","es":""},"explanation":{"fr":"","en":"With no quoted price and no holder as an asset, the liability is measured from the viewpoint of a participant who assumes the obligation (IFRS 13, para. 40): present value of expected outflows with a risk-compensation margin (IFRS 13, para. 41). Without that margin, the liability is understated.","es":""},"common_error":{"fr":"","en":"Omitting the compensation a participant would require to assume the obligation.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"He should have used the settlement price with the authority rather than a present value.","es":""},"correct":false,"feedback":{"fr":"","en":"Settlement with the counterparty is set aside (IFRS 13, para. 34); the present value of outflows is precisely an accepted technique (IFRS 13, para. 41). The flaw is the absence of a compensation margin. Rule to remember: The taker-over asks for compensation: it enters the measurement.","es":""}},{"id":"B","text":{"fr":"","en":"He omits the compensation a market participant would require to assume the obligation.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"He should have discounted at the expected inflation rate.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard does not limit the rate to inflation: the technique reflects the outflows a participant would expect to bear with a compensation margin (IFRS 13, para. 41). The underlying problem is forgetting that margin. Rule to remember: The taker-over asks for compensation: it enters the measurement.","es":""}},{"id":"D","text":{"fr":"","en":"He should not have measured this liability at fair value for lack of a quoted price.","es":""},"correct":false,"feedback":{"fr":"","en":"The lack of a quoted price does not prevent measurement: a technique is applied from the viewpoint of a participant who assumes the obligation (IFRS 13, para. 40). It is the implementation of the technique that is faulty. Rule to remember: The taker-over asks for compensation: it enters the measurement.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000065","standard_id":"IFRS13","concept_ids":["IFRS13.LIABILITY.NON_PERFORMANCE_RISK"],"dimension":"CALCULATION","context":"V1_QST.IFRS13.000065","tested_point":"QST.IFRS13.000065","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000006","section_id":"rule-risk"},"references":["IFRS 13 §42","IFRS 13 §43"],"exercise":{"prompt":{"fr":"","en":"Marvenne must pay {outflow} in {years} years under a liability with no quoted price. The discount rate reflecting its own credit risk is {rate_with}%; without that risk it would be {rate_without}% (case data). Compute the fair value of the liability taking non-performance risk into account, then the effect of that risk compared with a measurement excluding own credit risk.","es":""},"explanation":{"fr":"","en":"Approach: the measurement of a liability reflects non-performance risk, including own credit risk (IFRS 13, para. 42). With the risk: 1,334,025 ÷ 1.10² = 1,102,500. Without it: 1,334,025 ÷ 1.05² = 1,210,000. Effect: 1,210,000 − 1,102,500 = 107,500 less. Trap: discounting at the rate excluding own credit risk (1,210,000). Rule to remember: Own credit risk lowers the fair value of the liability.","es":""},"common_error":{"fr":"","en":"Ignoring own credit risk in the measurement of a liability.","es":""},"format":"CALCULATION","placeholders":[{"id":"outflow","value":"1334025","unit":"EUR"},{"id":"years","value":"2","unit":"YEARS"},{"id":"rate_with","value":"10","unit":"PERCENT"},{"id":"rate_without","value":"5","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Outflow to be paid","es":""},"value":"1334025","unit":"EUR"},{"label":{"fr":"","en":"Years before payment","es":""},"value":"2","unit":"YEARS"},{"label":{"fr":"","en":"Rate with own credit risk","es":""},"value":"10","unit":"PERCENT"},{"label":{"fr":"","en":"Rate without own credit risk","es":""},"value":"5","unit":"PERCENT"}],"steps":[{"id":"FAIR_VALUE","label":{"fr":"","en":"Fair value of the liability (with own credit risk)","es":""},"answer":1102500,"tolerance":0,"unit":"EUR"},{"id":"CREDIT_RISK_EFFECT","label":{"fr":"","en":"Effect of own credit risk (decrease)","es":""},"answer":107500,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"FAIR_VALUE","meaning":{"fr":"","en":"Fair value of the liability (with own credit risk)","es":""},"expression":"a / (1 + b)^2","variables":[{"symbol":"a","meaning":{"fr":"","en":"Outflow to be paid","es":""},"value":1334025,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Rate with own credit risk","es":""},"value":10,"unit":"PERCENT"}],"result":1102500,"unit":"EUR"}],"rationale":{"fr":"","en":"Own credit risk lowers the fair value of the liability.","es":""},"references":["REF.IFRS13.42"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000066","standard_id":"IFRS13","concept_ids":["IFRS13.LIABILITY.NON_PERFORMANCE_RISK"],"dimension":"CALCULATION","context":"V1_QST.IFRS13.000066","tested_point":"QST.IFRS13.000066","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000006","section_id":"rule-risk"},"references":["IFRS 13 §42","IFRS 13 §43"],"exercise":{"prompt":{"fr":"","en":"Quillane must pay {outflow} in {years} year under a liability with no quoted price. Its credit rating having deteriorated, the discount rate reflecting its own credit risk rises from {rate_before}% to {rate_after}% (case data). Compute the fair value of the liability after the deterioration, then its change compared with the previous situation.","es":""},"explanation":{"fr":"","en":"Approach: own credit risk is part of the non-performance risk reflected in the measurement of the liability (IFRS 13, paras. 42 and 43). Before: 1,209,600 ÷ 1.08 = 1,120,000. After: 1,209,600 ÷ 1.12 = 1,080,000. Change: 1,120,000 − 1,080,000 = 40,000 less. Trap: believing a deterioration of own credit raises the fair value of the liability. Rule to remember: Own credit deteriorates: the fair value of the liability falls, all else equal.","es":""},"common_error":{"fr":"","en":"Ignoring the effect of own credit on the fair value of a liability.","es":""},"format":"CALCULATION","placeholders":[{"id":"outflow","value":"1209600","unit":"EUR"},{"id":"years","value":"1","unit":"YEARS"},{"id":"rate_before","value":"8","unit":"PERCENT"},{"id":"rate_after","value":"12","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Outflow to be paid","es":""},"value":"1209600","unit":"EUR"},{"label":{"fr":"","en":"Years before payment","es":""},"value":"1","unit":"YEARS"},{"label":{"fr":"","en":"Rate before deterioration","es":""},"value":"8","unit":"PERCENT"},{"label":{"fr":"","en":"Rate after deterioration","es":""},"value":"12","unit":"PERCENT"}],"steps":[{"id":"FAIR_VALUE_AFTER","label":{"fr":"","en":"Fair value after deterioration","es":""},"answer":1080000,"tolerance":0,"unit":"EUR"},{"id":"DECREASE","label":{"fr":"","en":"Decrease in the fair value of the liability","es":""},"answer":40000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"FAIR_VALUE_AFTER","meaning":{"fr":"","en":"Fair value after deterioration","es":""},"expression":"a / (1 + b)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Outflow to be paid","es":""},"value":1209600,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Rate after deterioration","es":""},"value":12,"unit":"PERCENT"}],"result":1080000,"unit":"EUR"}],"rationale":{"fr":"","en":"Own credit deteriorates: the fair value of the liability falls, all else equal.","es":""},"references":["REF.IFRS13.42","REF.IFRS13.43"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000067","standard_id":"IFRS13","concept_ids":["IFRS13.LIABILITY.NON_PERFORMANCE_RISK"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000067","tested_point":"QST.IFRS13.000067","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000006","section_id":"rule-risk"},"references":["IFRS 13 §42"],"exercise":{"prompt":{"fr":"","en":"What does the non-performance risk of a liability cover and how is it assumed to behave on transfer of the liability?","es":""},"explanation":{"fr":"","en":"Non-performance risk is the risk that the entity will not fulfil its obligation (IFRS 13, Appendix A); it includes its own credit risk and is assumed to be the same before and after the transfer (IFRS 13, para. 42).","es":""},"common_error":{"fr":"","en":"Believing own credit risk is excluded from the measurement of a liability.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is limited to the creditor's credit risk, independent of the entity.","es":""},"correct":false,"feedback":{"fr":"","en":"Non-performance risk is the risk that the entity will not fulfil its obligation (IFRS 13, para. 42): it concerns the obligor, not the creditor. Rule to remember: Own credit risk included, the same before and after transfer.","es":""}},{"id":"B","text":{"fr":"","en":"It is assumed nil, because the liability is a certain commitment to pay.","es":""},"correct":false,"feedback":{"fr":"","en":"The measurement of a liability does reflect non-performance risk (IFRS 13, para. 42); assuming it is nil amounts to ignoring own credit risk (IFRS 13, para. 42). Rule to remember: Own credit risk included, the same before and after transfer.","es":""}},{"id":"C","text":{"fr":"","en":"It includes the entity's own credit risk and is assumed to be the same before and after the transfer.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It excludes the entity's own credit risk and differs before and after the transfer.","es":""},"correct":false,"feedback":{"fr":"","en":"It is the opposite: non-performance risk includes the entity's own credit risk and is assumed to be the same before and after the transfer (IFRS 13, para. 42). Rule to remember: Own credit risk included, the same before and after transfer.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000068","standard_id":"IFRS13","concept_ids":["IFRS13.LIABILITY.NON_PERFORMANCE_RISK"],"dimension":"APPLICATION","context":"V1_QST.IFRS13.000068","tested_point":"QST.IFRS13.000068","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000006","section_id":"rule-risk"},"references":["IFRS 13 §42","IFRS 13 §43"],"exercise":{"prompt":{"fr":"","en":"Norvenne, with an average rating, measures its liability assuming the taker-over would be a top-tier bank, with a credit risk far better than its own, which would reduce the effect of non-performance risk. Which assumption about credit risk must Norvenne use?","es":""},"explanation":{"fr":"","en":"The assumption is Norvenne's own credit risk, assumed the same before and after transfer (IFRS 13, para. 42); the entity takes into account the effect of its credit risk (IFRS 13, para. 43). A fictitiously stronger taker-over need not be assumed.","es":""},"common_error":{"fr":"","en":"Assuming a different credit risk before and after the transfer.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The same credit risk before and after the transfer, Norvenne's own credit risk.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"A nil credit risk, because a liability is performed in practice.","es":""},"correct":false,"feedback":{"fr":"","en":"The liability is measured taking into account the effect of own credit risk and other factors that may influence the likelihood of performance (IFRS 13, para. 43); a nil risk ignores it. Rule to remember: Same credit risk before and after: the entity's.","es":""}},{"id":"C","text":{"fr":"","en":"The average credit risk of the sector, rather than Norvenne's.","es":""},"correct":false,"feedback":{"fr":"","en":"The risk used is the entity's own, assumed the same before and after transfer (IFRS 13, para. 42); a sector average does not replace it unless it actually reflects the entity's situation (IFRS 13, para. 43). Rule to remember: Same credit risk before and after: the entity's.","es":""}},{"id":"D","text":{"fr":"","en":"A better credit risk after transfer, since the taker-over is stronger.","es":""},"correct":false,"feedback":{"fr":"","en":"Non-performance risk is assumed to be the same before and after the transfer of the liability (IFRS 13, para. 42): assuming a stronger taker-over changes the standard's assumption. Rule to remember: Same credit risk before and after: the entity's.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000070","standard_id":"IFRS13","concept_ids":["IFRS13.LIABILITY.TRANSFER_RESTRICTIONS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000070","tested_point":"QST.IFRS13.000070","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000006","section_id":"rule-risk"},"references":["IFRS 13 §45","IFRS 13 §46"],"exercise":{"prompt":{"fr":"","en":"A liability of the entity carries a restriction that prevents its transfer to a third party. How is this restriction treated in the fair value measurement?","es":""},"explanation":{"fr":"","en":"For a restriction preventing the transfer of a liability, no separate input is added: the effect is already in the other inputs (IFRS 13, para. 45), cash flows and rate, with no additional discount (IFRS 13, para. 46).","es":""},"common_error":{"fr":"","en":"Applying an additional discount for a transfer restriction already reflected in the price.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It prohibits measuring the liability at fair value.","es":""},"correct":false,"feedback":{"fr":"","en":"The restriction does not remove the measurement: the transfer assumption remains the standard's and the effect of the restriction is reflected in the existing inputs (IFRS 13, para. 45). Rule to remember: No double counting of a transfer restriction.","es":""}},{"id":"B","text":{"fr":"","en":"It calls for no separate input: its effect is already included in the other inputs.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It requires measuring the liability at the settlement value with the counterparty, since transfer to a third party is impossible.","es":""},"correct":false,"feedback":{"fr":"","en":"Settlement with the counterparty is set aside by the standard (IFRS 13, para. 34); a transfer restriction does not bring it back, its effect being already in the other inputs (IFRS 13, para. 46). Rule to remember: No double counting of a transfer restriction.","es":""}},{"id":"D","text":{"fr":"","en":"It calls for an additional discount, separate from the other inputs.","es":""},"correct":false,"feedback":{"fr":"","en":"No separate input is added for such a restriction: its effect is already included in the other inputs, cash flows and rate (IFRS 13, paras. 45 and 46). An additional discount would count the effect twice. Rule to remember: No double counting of a transfer restriction.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000071","standard_id":"IFRS13","concept_ids":["IFRS13.LIABILITY.DEMAND_FEATURE"],"dimension":"CALCULATION","context":"V1_VG.IFRS13.000004","tested_point":"VG.IFRS13.000004","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000006","section_id":"rule-risk"},"references":["IFRS 13 §47"],"exercise":{"prompt":{"fr":"","en":"Torvane's demand deposit must be repaid at the earliest in {years} years for {demand_amount} (first possible demand date); discount rate {rate}% (case data). A valuation technique gives {technique_result}. Compute the discounted demand amount and then the fair value of the financial liability.","es":""},"explanation":{"fr":"","en":"Approach: the fair value of a demand financial liability is not less than the amount payable on demand, discounted from the first date payment could be required (IFRS 13, para. 47). 1,210,000 ÷ 1.10² = 1,000,000. The technique gives 940,000, which is lower: fair value is the higher of the two, 1,000,000. Trap: using 940,000. Rule to remember: Floor: the discounted amount payable on demand.","es":""},"common_error":{"fr":"","en":"Measuring a demand deposit at less than the discounted amount payable on demand.","es":""},"format":"CALCULATION","placeholders":[{"id":"demand_amount","value":"1210000","unit":"EUR"},{"id":"years","value":"2","unit":"YEARS"},{"id":"rate","value":"10","unit":"PERCENT"},{"id":"technique_result","value":"940000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Amount payable on the first date","es":""},"value":"1210000","unit":"EUR"},{"label":{"fr":"","en":"Years to the first demand date","es":""},"value":"2","unit":"YEARS"},{"label":{"fr":"","en":"Discount rate","es":""},"value":"10","unit":"PERCENT"},{"label":{"fr":"","en":"Result of the valuation technique","es":""},"value":"940000","unit":"EUR"}],"steps":[{"id":"DISCOUNTED_DEMAND","label":{"fr":"","en":"Discounted demand amount","es":""},"answer":1000000,"tolerance":0,"unit":"EUR"},{"id":"FAIR_VALUE","label":{"fr":"","en":"Fair value of the liability","es":""},"answer":1000000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DISCOUNTED_DEMAND","meaning":{"fr":"","en":"Discounted demand amount","es":""},"expression":"a / (1 + b)^2","variables":[{"symbol":"a","meaning":{"fr":"","en":"Amount payable on the first date","es":""},"value":1210000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Discount rate","es":""},"value":10,"unit":"PERCENT"}],"result":1000000,"unit":"EUR"}],"rationale":{"fr":"","en":"Floor: the discounted amount payable on demand.","es":""},"references":["REF.IFRS13.47"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000072","standard_id":"IFRS13","concept_ids":["IFRS13.LIABILITY.DEMAND_FEATURE"],"dimension":"CALCULATION","context":"V1_VG.IFRS13.000004","tested_point":"VG.IFRS13.000004","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000006","section_id":"rule-risk"},"references":["IFRS 13 §47"],"exercise":{"prompt":{"fr":"","en":"Mirelane received funds from its customers: the sum of {demand_amount} can be claimed at the earliest in {years} years (first possible demand date). At the discount rate of {rate}% (case data), a valuation technique for this financial liability gives {technique_result}. Determine the discounted demand amount, then the fair value of the liability.","es":""},"explanation":{"fr":"","en":"Approach: the floor is the amount payable on demand, discounted from the first possible date (IFRS 13, para. 47): 2,420,000 ÷ 1.10² = 2,000,000. The technique gives 2,150,000, above the floor: fair value is 2,150,000. Trap: applying the floor mechanically (2,000,000). Rule to remember: Fair value is not below the floor but may exceed it.","es":""},"common_error":{"fr":"","en":"Systematically replacing the technique with the discounted demand amount.","es":""},"format":"CALCULATION","placeholders":[{"id":"demand_amount","value":"2420000","unit":"EUR"},{"id":"years","value":"2","unit":"YEARS"},{"id":"rate","value":"10","unit":"PERCENT"},{"id":"technique_result","value":"2150000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Amount payable on the first date","es":""},"value":"2420000","unit":"EUR"},{"label":{"fr":"","en":"Years to the first demand date","es":""},"value":"2","unit":"YEARS"},{"label":{"fr":"","en":"Discount rate","es":""},"value":"10","unit":"PERCENT"},{"label":{"fr":"","en":"Result of the valuation technique","es":""},"value":"2150000","unit":"EUR"}],"steps":[{"id":"DISCOUNTED_DEMAND","label":{"fr":"","en":"Discounted demand amount","es":""},"answer":2000000,"tolerance":0,"unit":"EUR"},{"id":"FAIR_VALUE","label":{"fr":"","en":"Fair value of the liability","es":""},"answer":2150000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DISCOUNTED_DEMAND","meaning":{"fr":"","en":"Discounted demand amount","es":""},"expression":"a / (1 + b)^2","variables":[{"symbol":"a","meaning":{"fr":"","en":"Amount payable on the first date","es":""},"value":2420000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Discount rate","es":""},"value":10,"unit":"PERCENT"}],"result":2000000,"unit":"EUR","rationale":{"fr":"","en":"Approach: the floor is the amount payable on demand, discounted from the first possible date (IFRS 13, para. 47): 2,420,000 ÷ 1.10² = 2,000,000.","es":""}}],"rationale":{"fr":"","en":"Fair value is not below the floor but may exceed it.","es":""},"references":["REF.IFRS13.47"]}},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IFRS13.000073","standard_id":"IFRS13","concept_ids":["IFRS13.LIABILITY.DEMAND_FEATURE"],"dimension":"ANALYSIS","context":"V1_QST.IFRS13.000073","tested_point":"QST.IFRS13.000073","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000006","section_id":"rule-risk"},"references":["IFRS 13 §47"],"exercise":{"prompt":{"fr":"","en":"A demand deposit of 500 is repayable immediately. A valuation technique gives 470, and the accountant uses 470 as fair value on the grounds that \"the deposit earns less than the market rate\". What is the error?","es":""},"explanation":{"fr":"","en":"The fair value of a demand financial liability is not less than the amount payable on demand, discounted from the first possible demand date (IFRS 13, para. 47). Here the date is immediate: the floor is 500, so 470 is too low.","es":""},"common_error":{"fr":"","en":"Measuring a demand deposit at less than the discounted amount payable on demand.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The deposit should be measured at 530 to reflect future interest.","es":""},"correct":false,"feedback":{"fr":"","en":"Nothing in the case justifies an amount above the floor; the flaw is going below 500 (IFRS 13, para. 47). The standard sets a minimum, not an addition of interest not provided. Rule to remember: A demand deposit is not worth less than what can be demanded.","es":""}},{"id":"B","text":{"fr":"","en":"He should have discounted 500 over five years before comparing.","es":""},"correct":false,"feedback":{"fr":"","en":"Discounting is made from the first date on which payment could be required (IFRS 13, para. 47): here immediately, hence no discounting. Five years do not appear in the statement. Rule to remember: A demand deposit is not worth less than what can be demanded.","es":""}},{"id":"C","text":{"fr":"","en":"A demand deposit is not a financial liability and therefore escapes this floor, since the depositor can withdraw it at any time.","es":""},"correct":false,"feedback":{"fr":"","en":"The floor targets precisely demand financial liabilities (IFRS 13, para. 47); a deposit repayable on demand is the typical case. Rule to remember: A demand deposit is not worth less than what can be demanded.","es":""}},{"id":"D","text":{"fr":"","en":"The fair value of a demand liability is not below the amount payable on demand: here 500, payable immediately.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000074","standard_id":"IFRS13","concept_ids":["IFRS13.PORTFOLIO.NET_EXPOSURE_EXCEPTION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000074","tested_point":"QST.IFRS13.000074","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000007","section_id":"rule"},"references":["IFRS 13 §49","IFRS 13 §48"],"exercise":{"prompt":{"fr":"","en":"On what condition may an entity measure a group of financial assets and liabilities on the basis of the price of a net position?","es":""},"explanation":{"fr":"","en":"A group of financial assets and liabilities managed on the basis of net exposure may be measured at the price of a net position (IFRS 13, para. 48), provided there is documented net-basis management, reporting to management on that basis and fair value measurement of each item (IFRS 13, para. 49).","es":""},"common_error":{"fr":"","en":"Applying the exception without documented net-basis management.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The group is managed on a documented net-exposure basis, management is informed on that basis and each item is measured at fair value at the reporting date.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The group is presented net in the statement of financial position.","es":""},"correct":false,"feedback":{"fr":"","en":"The conditions of the exception concern documented net-basis management, reporting to management and the fair value of each item; net presentation in the statement of financial position is not one of them (IFRS 13, para. 49). Rule to remember: Three conditions: documented net-basis management, reporting to management, fair value of each item.","es":""}},{"id":"C","text":{"fr":"","en":"The items of the group are measured at amortised cost.","es":""},"correct":false,"feedback":{"fr":"","en":"The exception presupposes fair value measurement of each item at the reporting date (IFRS 13, para. 49); items at amortised cost do not meet the condition. Rule to remember: Three conditions: documented net-basis management, reporting to management, fair value of each item.","es":""}},{"id":"D","text":{"fr":"","en":"As soon as the entity wishes to simplify its measurement calculations, provided the instruments concerned are exposed to the same market risk and management does not need to be informed of it.","es":""},"correct":false,"feedback":{"fr":"","en":"A wish to simplify is not a condition: the exception requires documented management of the group on a net basis, reporting to management on that basis and fair value measurement of each item at the reporting date (IFRS 13, para. 49). Rule to remember: Three conditions: documented net-basis management, reporting to management, fair value of each item.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000075","standard_id":"IFRS13","concept_ids":["IFRS13.PORTFOLIO.NET_EXPOSURE_EXCEPTION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000075","tested_point":"QST.IFRS13.000075","difficulty":"EXPERT","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000007","section_id":"rule"},"references":["IFRS 13 §49","IFRS 13 §50","IFRS 13 §51"],"exercise":{"prompt":{"fr":"","en":"Which statements about the portfolio exception (net position) are correct? (Several answers.)","es":""},"explanation":{"fr":"","en":"The exception requires documented net-basis management and reporting to management on that basis (IFRS 13, para. 49); it is a policy choice applied consistently (IFRS 13, para. 51) that does not change presentation (IFRS 13, para. 50).","es":""},"common_error":{"fr":"","en":"Presenting the measurement offset as a presentation offset.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The group's items must be presented net in the financial statements.","es":""},"correct":false,"feedback":{"fr":"","en":"The exception concerns measurement and does not change the presentation of the items (IFRS 13, para. 50). Net presentation requires another analysis, under another standard. Rule to remember: Net measurement, presentation unchanged, consistent choice.","es":""}},{"id":"B","text":{"fr":"","en":"The entity manages the group on a documented net basis.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The entity may apply it one year and drop it the next according to its interest.","es":""},"correct":false,"feedback":{"fr":"","en":"The exception is an accounting policy choice applied consistently from period to period for the same portfolio (IFRS 13, para. 51): alternating it by interest contradicts that consistency. Rule to remember: Net measurement, presentation unchanged, consistent choice.","es":""}},{"id":"D","text":{"fr":"","en":"Management is informed on that net basis.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The choice is applied consistently from period to period for the same portfolio.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000076","standard_id":"IFRS13","concept_ids":["IFRS13.PORTFOLIO.NET_EXPOSURE_EXCEPTION"],"dimension":"CALCULATION","context":"V1_QST.IFRS13.000076","tested_point":"QST.IFRS13.000076","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000007","section_id":"rule"},"references":["IFRS 13 §48","IFRS 13 §49"],"exercise":{"prompt":{"fr":"","en":"Auvrane bank manages a group of instruments exposed to the same market risk on the basis of its net exposure, with documented management and reporting to management on that basis; each item is measured at fair value at the reporting date (exception conditions met, case data). The long positions are worth {long_positions} and the short positions {short_positions} (at market price). Compute the group's net position.","es":""},"explanation":{"fr":"","en":"Approach: the exception conditions being met, the group may be measured on the basis of the price of a net position (IFRS 13, paras. 48 and 49). Net position = long positions − short positions = 12,000,000 − 9,500,000 = 2,500,000. Trap: adding the two positions (21,500,000). Rule to remember: The net position is the difference between long and short positions.","es":""},"common_error":{"fr":"","en":"Adding long and short positions instead of offsetting them.","es":""},"format":"CALCULATION","placeholders":[{"id":"long_positions","value":"12000000","unit":"EUR"},{"id":"short_positions","value":"9500000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Long positions","es":""},"value":"12000000","unit":"EUR"},{"label":{"fr":"","en":"Short positions","es":""},"value":"9500000","unit":"EUR"}],"steps":[{"id":"NET_POSITION","label":{"fr":"","en":"Net position of the group","es":""},"answer":2500000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"NET_POSITION","meaning":{"fr":"","en":"Net position of the group","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Long positions","es":""},"value":12000000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Short positions","es":""},"value":9500000,"unit":"EUR"}],"result":2500000,"unit":"EUR"}],"rationale":{"fr":"","en":"The net position is the difference between long and short positions.","es":""},"references":["REF.IFRS13.48","REF.IFRS13.49"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000077","standard_id":"IFRS13","concept_ids":["IFRS13.PORTFOLIO.NET_EXPOSURE_EXCEPTION"],"dimension":"ANALYSIS","context":"V1_QST.IFRS13.000077","tested_point":"QST.IFRS13.000077","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000007","section_id":"rule"},"references":["IFRS 13 §49","IFRS 13 §48"],"exercise":{"prompt":{"fr":"","en":"Vessolane bank measures a group of derivatives on the basis of a net position \"to simplify valuation\", although there is no documented management of the group on a net basis and management is not informed on that basis. What is the error?","es":""},"explanation":{"fr":"","en":"The portfolio exception is not a simplification tool: it requires documented net-basis management and reporting to management on that basis (IFRS 13, para. 49). Without them, each derivative remains measured individually.","es":""},"common_error":{"fr":"","en":"Applying the exception without documented net-basis management.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It should measure the derivatives at cost rather than at fair value.","es":""},"correct":false,"feedback":{"fr":"","en":"The exception presupposes fair value measurement of each item at the reporting date (IFRS 13, para. 49); moving to cost is not the correction, which is not to use the net position without the conditions. Rule to remember: No net position without documented net-basis management.","es":""}},{"id":"B","text":{"fr":"","en":"It should apply the exception only every other year.","es":""},"correct":false,"feedback":{"fr":"","en":"Alternating application does not cure the absence of the conditions: the exception rests on documented net-basis management and reporting to management on that basis (IFRS 13, para. 49). Rule to remember: No net position without documented net-basis management.","es":""}},{"id":"C","text":{"fr":"","en":"It applies the exception without the conditions of documented net-basis management and reporting to management.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It should present the derivatives net in the statement of financial position, in order to align presentation with the measurement used.","es":""},"correct":false,"feedback":{"fr":"","en":"Presentation is not the condition of the exception: it is subject to documented management, reporting to management and the fair value of each item (IFRS 13, para. 49). Rule to remember: No net position without documented net-basis management.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000078","standard_id":"IFRS13","concept_ids":["IFRS13.PORTFOLIO.NET_EXPOSURE_EXCEPTION"],"dimension":"APPLICATION","context":"V1_QST.IFRS13.000078","tested_point":"QST.IFRS13.000078","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000007","section_id":"rule"},"references":["IFRS 13 §51","IFRS 13 §48"],"exercise":{"prompt":{"fr":"","en":"Ormelane bank applies the portfolio exception to a group of swaps meeting all the conditions. A director concludes that it must now present these swaps net (a single amount) in the statement of financial position. What is the right answer?","es":""},"explanation":{"fr":"","en":"The portfolio exception concerns how the group is measured and does not change the presentation of its items (IFRS 13, para. 50). The bank continues to present its swaps under the applicable presentation standards.","es":""},"common_error":{"fr":"","en":"Confusing net-basis measurement with net presentation.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No: the exception concerns measurement and does not change the presentation of the items.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Yes: measuring on a net basis requires presenting the items net.","es":""},"correct":false,"feedback":{"fr":"","en":"The exception concerns measurement and does not change the presentation of the portfolio's items in the financial statements (IFRS 13, para. 50). The conclusion confuses measurement offset with presentation offset. Rule to remember: A measurement offset is not a presentation offset.","es":""}},{"id":"C","text":{"fr":"","en":"Yes, but only for the swaps in a short position.","es":""},"correct":false,"feedback":{"fr":"","en":"There is no long / short distinction for presentation: the exception does not change it (IFRS 13, para. 50). Long and short positions only serve to compute the net position (IFRS 13, para. 48). Rule to remember: A measurement offset is not a presentation offset.","es":""}},{"id":"D","text":{"fr":"","en":"No, but the bank must then give up the exception from the next period.","es":""},"correct":false,"feedback":{"fr":"","en":"Nothing requires giving up the exception: it is a policy choice applied consistently from period to period (IFRS 13, para. 51), and presentation is unchanged (IFRS 13, para. 50). Rule to remember: A measurement offset is not a presentation offset.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000080","standard_id":"IFRS13","concept_ids":["IFRS13.PORTFOLIO.SCOPE_OF_EXCEPTION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000080","tested_point":"QST.IFRS13.000080","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000007","section_id":"rule"},"references":["IFRS 13 §52"],"exercise":{"prompt":{"fr":"","en":"Which contracts fall within the scope of the portfolio exception?","es":""},"explanation":{"fr":"","en":"The exception applies to contracts within the scope of IFRS 9 (or IAS 39), whether or not they meet the IAS 32 definitions of a financial asset or liability (IFRS 13, para. 52). Rule to remember: The scope follows IFRS 9, not the IAS 32 definitions alone.","es":""},"common_error":{"fr":"","en":"Limiting the exception to financial assets and liabilities under IAS 32 alone.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Only derivatives listed on an organised market.","es":""},"correct":false,"feedback":{"fr":"","en":"The scope is defined by the perimeter of IFRS 9 (or IAS 39), not by a type of product or market (IFRS 13, para. 52). Rule to remember: The scope follows IFRS 9, not the IAS 32 definitions alone.","es":""}},{"id":"B","text":{"fr":"","en":"Only the contracts that meet the IAS 32 definitions of a financial asset or liability, to the exclusion of other contracts.","es":""},"correct":false,"feedback":{"fr":"","en":"The scope is not limited to the IAS 32 definitions: the exception applies to contracts within IFRS 9 (or IAS 39), whether or not they meet those definitions (IFRS 13, para. 52). Rule to remember: The scope follows IFRS 9, not the IAS 32 definitions alone.","es":""}},{"id":"C","text":{"fr":"","en":"Any contract measured at fair value under any standard.","es":""},"correct":false,"feedback":{"fr":"","en":"The criterion is falling within the scope of IFRS 9 (or IAS 39), not fair value measurement in general (IFRS 13, para. 52). An item at fair value under another standard is not covered for that reason. Rule to remember: The scope follows IFRS 9, not the IAS 32 definitions alone.","es":""}},{"id":"D","text":{"fr":"","en":"Contracts within IFRS 9, whether or not they meet the IAS 32 definitions of a financial asset or liability.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000081","standard_id":"IFRS13","concept_ids":["IFRS13.PORTFOLIO.SCOPE_OF_EXCEPTION","IFRS13.PORTFOLIO.NET_EXPOSURE_EXCEPTION"],"dimension":"APPLICATION","context":"V1_QST.IFRS13.000081","tested_point":"QST.IFRS13.000081","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000007","section_id":"rule"},"references":["IFRS 13 §52","IFRS 13 §48","IFRS 13 §49"],"exercise":{"prompt":{"fr":"","en":"Mercanelle trades a forward contract to buy copper that falls within the scope of IFRS 9 but does not meet the IAS 32 definition of a financial asset or liability (case data). The entity otherwise manages its net market-risk exposures in a documented way. Can this contract be part of the group measured on the basis of a net position?","es":""},"explanation":{"fr":"","en":"What matters is that the contract falls within the scope of IFRS 9, whether or not it meets the IAS 32 definitions (IFRS 13, para. 52); the net-basis management and fair value measurement conditions remain to be checked (IFRS 13, para. 49).","es":""},"common_error":{"fr":"","en":"Excluding a contract from the portfolio because it is not a financial instrument under IAS 32.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"No: a contract on a physical commodity is always excluded from the exception.","es":""},"correct":false,"feedback":{"fr":"","en":"The nature of the underlying is not the criterion: the exception covers contracts within the scope of IFRS 9, even if they do not meet the IAS 32 definitions (IFRS 13, para. 52). Rule to remember: Scope = IFRS 9; management conditions are separate.","es":""}},{"id":"B","text":{"fr":"","en":"Yes, since it falls within the scope of IFRS 9, subject to the other conditions of the exception.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"No: only instruments meeting the IAS 32 definitions can be included.","es":""},"correct":false,"feedback":{"fr":"","en":"The exception applies to contracts within the scope of IFRS 9, whether or not they meet the IAS 32 definitions (IFRS 13, para. 52). The contract may therefore be included if the other conditions are met. Rule to remember: Scope = IFRS 9; management conditions are separate.","es":""}},{"id":"D","text":{"fr":"","en":"Yes, with no other condition, since the entity's management is documented.","es":""},"correct":false,"feedback":{"fr":"","en":"Documented management is only one of the conditions: reporting to management on a net basis and fair value measurement of each item are still required (IFRS 13, para. 49). The scope (IFRS 13, para. 52) does not replace them. Rule to remember: Scope = IFRS 9; management conditions are separate.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000082","standard_id":"IFRS13","concept_ids":["IFRS13.PORTFOLIO.MEASUREMENT_OF_NET_POSITION"],"dimension":"CALCULATION","context":"V1_QST.IFRS13.000082","tested_point":"QST.IFRS13.000082","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000007","section_id":"rule-measure"},"references":["IFRS 13 §53","IFRS 13 §54"],"exercise":{"prompt":{"fr":"","en":"Tiremane bank's group meets the conditions of the portfolio exception. Its long positions are worth {long_positions} and its short positions {short_positions} (at market price), exposed to substantially the same market risks. Applying to the net position the price within the bid-ask spread that is most representative of fair value gives an adjustment of {adjustment} (to be deducted, case data). Compute the net position and then its fair value.","es":""},"explanation":{"fr":"","en":"Approach: the offsetting market risks being substantially the same (IFRS 13, para. 54), the net position is measured at the price within the bid-ask spread that is most representative of fair value in the circumstances, applied to the net exposure (IFRS 13, para. 53). Net position: 8,400,000 − 6,150,000 = 2,250,000. Fair value: 2,250,000 − 18,000 = 2,232,000. Trap: forgetting the adjustment of the net position. Rule to remember: Net position first, then its adjustment: the net position is measured, not each item.","es":""},"common_error":{"fr":"","en":"Measuring the net position without the adjustment specific to the net position.","es":""},"format":"CALCULATION","placeholders":[{"id":"long_positions","value":"8400000","unit":"EUR"},{"id":"short_positions","value":"6150000","unit":"EUR"},{"id":"adjustment","value":"18000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Long positions","es":""},"value":"8400000","unit":"EUR"},{"label":{"fr":"","en":"Short positions","es":""},"value":"6150000","unit":"EUR"},{"label":{"fr":"","en":"Adjustment of the net position (to deduct)","es":""},"value":"18000","unit":"EUR"}],"steps":[{"id":"NET_POSITION","label":{"fr":"","en":"Net position","es":""},"answer":2250000,"tolerance":0,"unit":"EUR"},{"id":"NET_POSITION_FV","label":{"fr":"","en":"Fair value of the net position","es":""},"answer":2232000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"NET_POSITION","meaning":{"fr":"","en":"Net position","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Long positions","es":""},"value":8400000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Short positions","es":""},"value":6150000,"unit":"EUR"}],"result":2250000,"unit":"EUR"},{"step":"NET_POSITION_FV","meaning":{"fr":"","en":"Fair value of the net position","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Net position","es":""},"value":2250000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Adjustment of the net position (to deduct)","es":""},"value":18000,"unit":"EUR"}],"result":2232000,"unit":"EUR"}],"rationale":{"fr":"","en":"Net position first, then its adjustment: the net position is measured, not each item.","es":""},"references":["REF.IFRS13.53","REF.IFRS13.54"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000083","standard_id":"IFRS13","concept_ids":["IFRS13.PORTFOLIO.MEASUREMENT_OF_NET_POSITION"],"dimension":"CALCULATION","context":"V1_QST.IFRS13.000083","tested_point":"QST.IFRS13.000083","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000007","section_id":"rule-measure"},"references":["IFRS 13 §50"],"exercise":{"prompt":{"fr":"","en":"Sauvelane bank must allocate a portfolio adjustment of {adjustment} (decrease in value) to the three items of the group, with gross amounts of {item_a}, {item_b} and {item_c}. Case convention: allocation in proportion to each item's gross amount, the basis being used consistently. Compute the share of the adjustment allocated to each item.","es":""},"explanation":{"fr":"","en":"Approach: portfolio adjustments are allocated to the individual items on a reasonable and consistent basis (IFRS 13, para. 50). Case convention: basis proportional to gross amount (total 1,000,000). A: 30,000 × 600,000 ÷ 1,000,000 = 18,000; B: 30,000 × 300,000 ÷ 1,000,000 = 9,000; C: 30,000 × 100,000 ÷ 1,000,000 = 3,000. Total: 30,000. Trap: allocating equally (10,000 each) without a consistent basis. Rule to remember: A reasonable and consistent allocation basis; the shares add up to the adjustment.","es":""},"common_error":{"fr":"","en":"Allocating the portfolio adjustment without a consistent basis.","es":""},"format":"CALCULATION","placeholders":[{"id":"adjustment","value":"30000","unit":"EUR"},{"id":"item_a","value":"600000","unit":"EUR"},{"id":"item_b","value":"300000","unit":"EUR"},{"id":"item_c","value":"100000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Portfolio adjustment (decrease)","es":""},"value":"30000","unit":"EUR"},{"label":{"fr":"","en":"Gross amount of item A","es":""},"value":"600000","unit":"EUR"},{"label":{"fr":"","en":"Gross amount of item B","es":""},"value":"300000","unit":"EUR"},{"label":{"fr":"","en":"Gross amount of item C","es":""},"value":"100000","unit":"EUR"}],"steps":[{"id":"ALLOC_A","label":{"fr":"","en":"Share allocated to A","es":""},"answer":18000,"tolerance":0,"unit":"EUR"},{"id":"ALLOC_B","label":{"fr":"","en":"Share allocated to B","es":""},"answer":9000,"tolerance":0,"unit":"EUR"},{"id":"ALLOC_C","label":{"fr":"","en":"Share allocated to C","es":""},"answer":3000,"tolerance":0,"unit":"EUR"}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000084","standard_id":"IFRS13","concept_ids":["IFRS13.PORTFOLIO.MEASUREMENT_OF_NET_POSITION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000084","tested_point":"QST.IFRS13.000084","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000007","section_id":"rule-measure"},"references":["IFRS 13 §54","IFRS 13 §53"],"exercise":{"prompt":{"fr":"","en":"For long and short positions to be offset in the net position for market risk, what is required?","es":""},"explanation":{"fr":"","en":"The offsetting market risks must be substantially the same for the net position to be used (IFRS 13, para. 54), including the duration of the exposure, the measurement being made at the most representative price within the bid-ask spread, applied to the net exposure (IFRS 13, para. 53).","es":""},"common_error":{"fr":"","en":"Offsetting market risks of a different nature or duration.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"That they are held with the same counterparty, whatever the nature of the market-risk exposure.","es":""},"correct":false,"feedback":{"fr":"","en":"The counterparty is not the criterion for market risk: the offsetting market risks must be substantially the same, in nature and duration of exposure (IFRS 13, para. 54). The counterparty matters for credit risk (IFRS 13). Rule to remember: Only substantially identical market risks are offset.","es":""}},{"id":"B","text":{"fr":"","en":"That the offsetting market risks are substantially the same, in nature and duration of exposure.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"That they have the same nominal amount.","es":""},"correct":false,"feedback":{"fr":"","en":"Equal nominal amounts are not required: a net position can result from positions of different amounts. What counts is the practical identity of the market risks, in nature and duration (IFRS 13, para. 54). Rule to remember: Only substantially identical market risks are offset.","es":""}},{"id":"D","text":{"fr":"","en":"That they appear in the same accounting category.","es":""},"correct":false,"feedback":{"fr":"","en":"The accounting category is not the criterion for offsetting market risk: the condition concerns the practical identity of the risks offset, in nature and duration (IFRS 13, para. 54). Rule to remember: Only substantially identical market risks are offset.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000085","standard_id":"IFRS13","concept_ids":["IFRS13.PORTFOLIO.MEASUREMENT_OF_NET_POSITION"],"dimension":"APPLICATION","context":"V1_QST.IFRS13.000085","tested_point":"QST.IFRS13.000085","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000007","section_id":"rule-measure"},"references":["IFRS 13 §56","IFRS 13 §53"],"exercise":{"prompt":{"fr":"","en":"Cantelane bank entered into two derivatives with the same counterparty, covered by a netting and collateral agreement that limits the exposure to that counterparty's credit risk (case data). How does it assess that credit risk in the measurement of the net position?","es":""},"explanation":{"fr":"","en":"For a counterparty's credit risk, the measurement of the net position takes into account the netting and collateral agreements that limit the exposure (IFRS 13, para. 56). The exposure used is therefore net, not gross.","es":""},"common_error":{"fr":"","en":"Measuring credit risk on gross amounts, ignoring netting agreements.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"On the single derivative of greater value, the other being ignored.","es":""},"correct":false,"feedback":{"fr":"","en":"The measurement concerns the group's net position with this counterparty, taking netting and collateral agreements into account (IFRS 13, para. 56); ignoring a derivative would distort the net position. Rule to remember: Credit risk is measured on the net exposure after agreements.","es":""}},{"id":"B","text":{"fr":"","en":"On the gross amount of each derivative, ignoring the agreement.","es":""},"correct":false,"feedback":{"fr":"","en":"For a counterparty's credit risk, the net position takes into account netting and collateral agreements that limit the exposure (IFRS 13, para. 56). Ignoring the agreement overstates the exposure. Rule to remember: Credit risk is measured on the net exposure after agreements.","es":""}},{"id":"C","text":{"fr":"","en":"On the net position, taking into account the netting and collateral agreements that limit the exposure.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"On the net position, taking the agreement into account without assessing whether it would be enforceable in the event of default.","es":""},"correct":false,"feedback":{"fr":"","en":"The net position reflects the agreement according to participants' expectations about its enforceability in the event of default: that assessment cannot be skipped (IFRS 13, para. 56). Rule to remember: Credit risk is measured on the net exposure after agreements.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000086","standard_id":"IFRS13","concept_ids":["IFRS13.INITIAL.TRANSACTION_PRICE_VS_FV"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000086","tested_point":"QST.IFRS13.000086","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000008","section_id":"rule-price"},"references":["IFRS 13 §57","IFRS 13 §58"],"exercise":{"prompt":{"fr":"","en":"At initial recognition, why may the transaction price differ from fair value?","es":""},"explanation":{"fr":"","en":"At initial recognition, the transaction price is the entry price whereas fair value is an exit price: they may differ (IFRS 13, para. 57), even though they are equal in many cases (IFRS 13, para. 58).","es":""},"common_error":{"fr":"","en":"Assuming the transaction price is the initial fair value without checking.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Because the transaction price is an entry price, whereas fair value is an exit price.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Because fair value is always lower than the price paid.","es":""},"correct":false,"feedback":{"fr":"","en":"There is no systematic direction: fair value may be above, equal to or below the price paid. In many cases it is equal, but not necessarily (IFRS 13, para. 58). The difference lies in the nature of the two prices (IFRS 13, para. 57). Rule to remember: Entry price and exit price: often equal, not necessarily.","es":""}},{"id":"C","text":{"fr":"","en":"Because the transaction price is set after the reporting date and fair value before it.","es":""},"correct":false,"feedback":{"fr":"","en":"The difference is not a matter of timing: the transaction price is an entry price and fair value an exit price (IFRS 13, para. 57). Dates do not create the gap. Rule to remember: Entry price and exit price: often equal, not necessarily.","es":""}},{"id":"D","text":{"fr":"","en":"Because the standard prohibits using the transaction price at initial recognition, fair value having to be used automatically.","es":""},"correct":false,"feedback":{"fr":"","en":"Nothing prohibits the transaction price: in many cases it is equal to fair value, which is not systematic (IFRS 13, para. 58). Rule to remember: Entry price and exit price: often equal, not necessarily.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000088","standard_id":"IFRS13","concept_ids":["IFRS13.INITIAL.TRANSACTION_PRICE_VS_FV"],"dimension":"CALCULATION","context":"V1_QST.IFRS13.000088","tested_point":"QST.IFRS13.000088","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000008","section_id":"rule-price"},"references":["IFRS 13 §57","IFRS 13 §59"],"exercise":{"prompt":{"fr":"","en":"Fordane acquires an instrument for {transaction_price}. A valuation technique for the exit price, based on observable inputs, gives {fair_value} at the acquisition date. Compute the difference between fair value and the transaction price (positive: fair value above the price paid).","es":""},"explanation":{"fr":"","en":"Approach: the transaction price is an entry price and fair value an exit price; they may differ (IFRS 13, para. 57). The entity compares the fair value from the technique with the price paid: 1,260,000 − 1,200,000 = 60,000. The treatment of that difference is a matter for the standard applicable to the item. Trap: assuming the two prices are equal without comparing them. Rule to remember: Compare the price paid with the fair value from the technique.","es":""},"common_error":{"fr":"","en":"Assuming the transaction price is always the initial fair value.","es":""},"format":"CALCULATION","placeholders":[{"id":"transaction_price","value":"1200000","unit":"EUR"},{"id":"fair_value","value":"1260000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Transaction price","es":""},"value":"1200000","unit":"EUR"},{"label":{"fr":"","en":"Fair value from the technique","es":""},"value":"1260000","unit":"EUR"}],"steps":[{"id":"DIFFERENCE","label":{"fr":"","en":"Initial difference (fair value − price)","es":""},"answer":60000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DIFFERENCE","meaning":{"fr":"","en":"Initial difference (fair value − price)","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value from the technique","es":""},"value":1260000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Transaction price","es":""},"value":1200000,"unit":"EUR"}],"result":60000,"unit":"EUR"}],"rationale":{"fr":"","en":"Compare the price paid with the fair value from the technique.","es":""},"references":["REF.IFRS13.57"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000091","standard_id":"IFRS13","concept_ids":["IFRS13.INITIAL.DAY_ONE_GAIN_LOSS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000091","tested_point":"QST.IFRS13.000091","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000008","section_id":"rule-dayone"},"references":["IFRS 13 §60"],"exercise":{"prompt":{"fr":"","en":"If fair value is required at initial recognition and differs from the transaction price, what does IFRS 13 provide for the difference?","es":""},"explanation":{"fr":"","en":"Under paragraph 60, the difference between the fair value required at initial recognition and the transaction price is recognised in profit or loss, unless another standard provides otherwise (IFRS 13, para. 60). The precise treatment therefore depends on the standard applicable to the item.","es":""},"common_error":{"fr":"","en":"Attributing to IFRS 13 a treatment of the initial difference it does not provide on its own.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is always deferred and spread over the life of the item, regardless of the applicable standard.","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 13 provides no systematic deferral: the difference is recognised in profit or loss, unless another standard provides otherwise (IFRS 13, para. 60). Deferral exists only if the applicable standard requires it. Rule to remember: By default in profit or loss; another standard may provide otherwise.","es":""}},{"id":"B","text":{"fr":"","en":"It is recognised in profit or loss, unless another standard provides otherwise.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It is recognised directly in equity.","es":""},"correct":false,"feedback":{"fr":"","en":"Nothing in the rule provides for equity: the difference is recognised in profit or loss, unless another standard provides otherwise (IFRS 13, para. 60). Rule to remember: By default in profit or loss; another standard may provide otherwise.","es":""}},{"id":"D","text":{"fr":"","en":"It is ignored: the item stays measured at the transaction price.","es":""},"correct":false,"feedback":{"fr":"","en":"If fair value is required at initial recognition, the item is measured at fair value and the difference is recognised (IFRS 13, para. 60). Ignoring it would amount to using the entry price. Rule to remember: By default in profit or loss; another standard may provide otherwise.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000092","standard_id":"IFRS13","concept_ids":["IFRS13.INITIAL.DAY_ONE_GAIN_LOSS","IFRS13.INITIAL.TRANSACTION_PRICE_VS_FV"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000092","tested_point":"QST.IFRS13.000092","difficulty":"EXPERT","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":90,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000008","section_id":"rule-price"},"references":["IFRS 13 §60","IFRS 13 §58"],"exercise":{"prompt":{"fr":"","en":"Which statements about the day-one difference (fair value − transaction price) are correct? (Several answers.)","es":""},"explanation":{"fr":"","en":"The day-one difference is recognised in profit or loss unless another standard provides otherwise (IFRS 13, para. 60), because the transaction price is not necessarily fair value (IFRS 13, para. 58). Any deferral comes from the instrument's standard, not from IFRS 13.","es":""},"common_error":{"fr":"","en":"Attributing the treatment of the initial difference to IFRS 13.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The detailed treatment depends on the standard applicable to the item measured.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"IFRS 13 itself requires the difference to be deferred when fair value rests on unobservable inputs.","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 13 does not provide this deferral: it recognises the difference in profit or loss unless another standard provides otherwise (IFRS 13, para. 60). Any deferral therefore comes from the standard applicable to the instrument. Rule to remember: IFRS 13 measures; the applicable standard decides on the exceptional treatment.","es":""}},{"id":"C","text":{"fr":"","en":"A difference may exist because the transaction price is not always fair value.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It is recognised in profit or loss, unless another standard provides otherwise.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The difference is always recognised in other comprehensive income.","es":""},"correct":false,"feedback":{"fr":"","en":"The general rule is recognition in profit or loss, unless another standard provides otherwise (IFRS 13, para. 60): no rule designates other comprehensive income as a systematic treatment. Rule to remember: IFRS 13 measures; the applicable standard decides on the exceptional treatment.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000093","standard_id":"IFRS13","concept_ids":["IFRS13.INITIAL.DAY_ONE_GAIN_LOSS","IFRS13.INITIAL.TRANSACTION_PRICE_VS_FV"],"dimension":"CALCULATION","context":"V1_QST.IFRS13.000093","tested_point":"QST.IFRS13.000093","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000008","section_id":"rule-price"},"references":["IFRS 13 §60","IFRS 13 §58"],"exercise":{"prompt":{"fr":"","en":"Moldrane bank acquires a security for {price_paid}. Its fair value at the acquisition date is {fair_value}, required at initial recognition. No provision of another standard requires the difference to be deferred (case data). Compute the day-one gain recognised in profit or loss and the initial carrying amount of the security.","es":""},"explanation":{"fr":"","en":"Approach: fair value being required at initial recognition and differing from the price, the difference goes to profit or loss unless another standard provides otherwise (IFRS 13, para. 60); the case cites none. Gain: 910,000 − 850,000 = 60,000. Initial carrying amount = fair value = 910,000. Trap: recording the security at 850,000 and leaving the difference out of profit or loss. Rule to remember: Initial difference in profit or loss by default; initial amount = fair value.","es":""},"common_error":{"fr":"","en":"Recognising an initial difference in profit or loss without checking the applicable standard's provision.","es":""},"format":"CALCULATION","placeholders":[{"id":"price_paid","value":"850000","unit":"EUR"},{"id":"fair_value","value":"910000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Price paid","es":""},"value":"850000","unit":"EUR"},{"label":{"fr":"","en":"Fair value at acquisition","es":""},"value":"910000","unit":"EUR"}],"steps":[{"id":"DAY_ONE_GAIN","label":{"fr":"","en":"Day-one gain in profit or loss","es":""},"answer":60000,"tolerance":0,"unit":"EUR"},{"id":"CARRYING_AMOUNT","label":{"fr":"","en":"Initial carrying amount","es":""},"answer":910000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"DAY_ONE_GAIN","meaning":{"fr":"","en":"Day-one gain in profit or loss","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value at acquisition","es":""},"value":910000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Price paid","es":""},"value":850000,"unit":"EUR"}],"result":60000,"unit":"EUR"}],"rationale":{"fr":"","en":"Initial difference in profit or loss by default; initial amount = fair value.","es":""},"references":["REF.IFRS13.60"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000094","standard_id":"IFRS13","concept_ids":["IFRS13.INITIAL.DAY_ONE_GAIN_LOSS"],"dimension":"ANALYSIS","context":"V1_QST.IFRS13.000094","tested_point":"QST.IFRS13.000094","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000008","section_id":"rule-dayone"},"references":["IFRS 13 §60"],"exercise":{"prompt":{"fr":"","en":"In his closing file, an accountant writes: \"IFRS 13 requires the day-one difference to be deferred in a liability and released to profit or loss over the life of the instrument.\" What is the error?","es":""},"explanation":{"fr":"","en":"IFRS 13 provides that the difference is recognised in profit or loss unless another standard provides otherwise (IFRS 13, para. 60): it does not itself require a deferral. The file should cite the standard applicable to the instrument for any different treatment.","es":""},"common_error":{"fr":"","en":"Attributing the treatment of the initial difference to IFRS 13.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"He attributes to IFRS 13 a treatment it does not provide: the difference goes to profit or loss, unless another standard provides otherwise.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"He should have recognised the difference directly in equity.","es":""},"correct":false,"feedback":{"fr":"","en":"The rule in paragraph 60 is recognition in profit or loss, unless another standard provides otherwise (IFRS 13, para. 60); it does not designate equity. The flaw is attributing a deferral to IFRS 13. Rule to remember: A deferral of the difference is justified by the instrument's standard, not by IFRS 13 alone.","es":""}},{"id":"C","text":{"fr":"","en":"He should have released the difference to profit or loss over the instrument's shorter life.","es":""},"correct":false,"feedback":{"fr":"","en":"Choosing a release period is not an IFRS 13 rule: paragraph 60 provides for recognition in profit or loss, unless another standard provides otherwise (IFRS 13, para. 60). Rule to remember: A deferral of the difference is justified by the instrument's standard, not by IFRS 13 alone.","es":""}},{"id":"D","text":{"fr":"","en":"He should have ignored the difference, because fair value is not required at initial recognition, the item remaining measured at the price paid.","es":""},"correct":false,"feedback":{"fr":"","en":"The statement presupposes a day-one difference: fair value is therefore required at initial recognition, and the difference is treated under paragraph 60 (IFRS 13, para. 60). Ignoring it is not the correction. Rule to remember: A deferral of the difference is justified by the instrument's standard, not by IFRS 13 alone.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000096","standard_id":"IFRS13","concept_ids":["IFRS13.INITIAL.DAY_ONE_GAIN_LOSS","IFRS13.INITIAL.TRANSACTION_PRICE_VS_FV"],"dimension":"APPLICATION","context":"V1_QST.IFRS13.000096","tested_point":"QST.IFRS13.000096","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":60,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000008","section_id":"rule-price"},"references":["IFRS 13 §60","IFRS 13 §58"],"exercise":{"prompt":{"fr":"","en":"Rivelane bank acquires a portfolio of receivables for 970,000; its fair value, required at initial recognition, is 1,000,000 under a technique based on unobservable inputs. To decide the treatment of the 30,000 difference, what must the bank rely on?","es":""},"explanation":{"fr":"","en":"IFRS 13 recognises the difference in profit or loss unless another standard provides otherwise (IFRS 13, para. 60): the bank turns to the standard applicable to the instrument, which decides the treatment of the difference, including any deferral.","es":""},"common_error":{"fr":"","en":"Looking in IFRS 13 for an answer that only the instrument's standard gives.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"On IFRS 13 alone, which sets the treatment of any initial difference.","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 13 does not set this treatment on its own: the difference is recognised in profit or loss unless another standard provides otherwise (IFRS 13, para. 60). The standard applicable to the item must therefore be consulted. Rule to remember: For the initial difference, the right question is: which standard does the instrument fall under?","es":""}},{"id":"B","text":{"fr":"","en":"On the standard applicable to the instrument, which may provide otherwise than immediate profit or loss.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"On management's policy, which freely chooses between immediate profit or loss and deferral.","es":""},"correct":false,"feedback":{"fr":"","en":"The choice is not free: the general rule is recognition in profit or loss, unless another standard provides otherwise (IFRS 13, para. 60). Management does not create a deferral by preference. Rule to remember: For the initial difference, the right question is: which standard does the instrument fall under?","es":""}},{"id":"D","text":{"fr":"","en":"On the average market price of comparable portfolios, which replaces the difference.","es":""},"correct":false,"feedback":{"fr":"","en":"An average market price does not deal with the difference: the question is how to account for the difference between fair value and the price paid, which is a matter for the applicable standard (IFRS 13, para. 60). Rule to remember: For the initial difference, the right question is: which standard does the instrument fall under?","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000100","standard_id":"IFRS13","concept_ids":["IFRS13.TECHNIQUES.APPROACHES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000100","tested_point":"QST.IFRS13.000100","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":55,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000009","section_id":"rule-approaches"},"references":["IFRS 13 §B5","IFRS 13 §B8","IFRS 13 §B10","IFRS 13"],"exercise":{"prompt":{"fr":"","en":"Valtrin estimates the fair value of an interest in an unlisted company by applying to its earnings the multiples observed in recent sales of comparable companies. Which valuation approach does this correspond to?","es":""},"explanation":{"fr":"","en":"Applying multiples observed in transactions involving comparable items is the market approach (IFRS 13, Appendix A). The cost approach reasons on the replacement cost of an asset's service capacity (IFRS 13) and the income approach discounts future amounts.","es":""},"common_error":{"fr":"","en":"Treating market multiples as entity-specific data when they come from comparable transactions.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The cost approach, because the estimate starts from the amounts spent to set the company up.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer mixes up two sources of information. The cost approach looks at the amount needed to replace the service capacity of an asset, after obsolescence (IFRS 13, Appendix A), not at amounts already spent. Here, multiples drawn from comparable sales underpin the estimate (IFRS 13). Rule to remember: prices and multiples from comparable transactions belong to the market approach (IFRS 13).","es":""}},{"id":"B","text":{"fr":"","en":"The income approach, because future earnings are converted into a single discounted amount.","es":""},"correct":false,"feedback":{"fr":"","en":"The income approach converts future amounts (cash flows, income, expenses) into a single discounted amount (IFRS 13, Appendix A). Here, no forecast cash flow is discounted: the estimate applies multiples observed in the market. Rule to remember: multiples from comparable transactions = market approach; discounting of future amounts = income approach (IFRS 13).","es":""}},{"id":"C","text":{"fr":"","en":"The market approach, because it uses prices from comparable transactions.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"No approach, because an unlisted company cannot be valued by comparison.","es":""},"correct":false,"feedback":{"fr":"","en":"The lack of a listing does not prevent a valuation: the market approach uses information from transactions involving identical or comparable items, for example multiples (IFRS 13, Appendix A). Rule to remember: the lack of a listing does not close the market approach (IFRS 13).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000101","standard_id":"IFRS13","concept_ids":["IFRS13.TECHNIQUES.APPROACHES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000101","tested_point":"QST.IFRS13.000101","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":55,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000009","section_id":"rule-approaches"},"references":["IFRS 13 §B8","IFRS 13 §B5","IFRS 13 §B10","IFRS 13"],"exercise":{"prompt":{"fr":"","en":"For a highly specialised machine, a valuer estimates what it would cost today to replace its service capacity, then allows for the wear and obsolescence of the unit being valued. Which approach is being applied?","es":""},"explanation":{"fr":"","en":"Estimating the amount required to replace the service capacity of an asset, after obsolescence, is the cost approach (IFRS 13, Appendix A). The market approach (IFRS 13) and the income approach start from comparable transactions and discounted future cash flows respectively.","es":""},"common_error":{"fr":"","en":"Equating the cost approach with the asset's historical cost instead of its current replacement cost.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The cost approach, based on current replacement cost, after obsolescence.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The income approach, because the wear of the machine reduces its future cash flows.","es":""},"correct":false,"feedback":{"fr":"","en":"The income approach discounts future amounts into a single amount (IFRS 13, Appendix A). Here, the valuer projects no cash flow: they price the replacement of the service capacity, then adjust for obsolescence (IFRS 13). Rule to remember: wear enters the cost approach as obsolescence, not as lower discounted cash flows (IFRS 13).","es":""}},{"id":"C","text":{"fr":"","en":"The market approach, because it rests on the machine's original acquisition cost.","es":""},"correct":false,"feedback":{"fr":"","en":"The original acquisition cost is not the datum used here: the valuer estimates a replacement cost as of today, which is the logic of the cost approach (IFRS 13, Appendix A). The market approach starts from prices of comparable transactions (IFRS 13). Rule to remember: current replacement cost, after obsolescence = cost approach (IFRS 13).","es":""}},{"id":"D","text":{"fr":"","en":"No approach: a replacement cost is used to account for the asset, not to estimate its fair value.","es":""},"correct":false,"feedback":{"fr":"","en":"Current replacement cost is not reserved for accounting: it is the very basis of the cost approach, one of the approaches used to measure fair value (IFRS 13, Appendix A). Rule to remember: the cost approach is a valuation approach in its own right (IFRS 13).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000103","standard_id":"IFRS13","concept_ids":["IFRS13.TECHNIQUES.APPROACHES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000103","tested_point":"QST.IFRS13.000103","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000009","section_id":"rule-approaches"},"references":["IFRS 13 §B10","IFRS 13 §B5","IFRS 13 §B8","IFRS 13"],"exercise":{"prompt":{"fr":"","en":"Which of the following statements about the income approach are correct?","es":""},"explanation":{"fr":"","en":"The income approach converts future amounts (cash flows, income, expenses) into a single discounted amount, which reflects current market expectations (IFRS 13, Appendix A). Multiples from comparable transactions belong to the market approach (IFRS 13) and replacement cost to the cost approach.","es":""},"common_error":{"fr":"","en":"Attributing market multiples or replacement cost to the income approach.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It relies mainly on multiples drawn from sales of comparable items.","es":""},"correct":false,"feedback":{"fr":"","en":"This statement describes the market approach, which uses prices and information from transactions involving identical or comparable items, for example multiples (IFRS 13, Appendix A). The income approach works on future amounts (IFRS 13). Rule to remember: transaction multiples belong to the market approach, discounted future cash flows to the income approach (IFRS 13).","es":""}},{"id":"B","text":{"fr":"","en":"It converts future amounts (cash flows, income, expenses) into a single discounted amount.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It starts from the replacement cost of an asset's service capacity.","es":""},"correct":false,"feedback":{"fr":"","en":"This statement describes the cost approach, which quantifies the replacement of an asset's service capacity after obsolescence (IFRS 13, Appendix A). The income approach discounts future amounts (IFRS 13). Rule to remember: replacement cost = cost approach; discounted future amounts = income approach (IFRS 13).","es":""}},{"id":"D","text":{"fr":"","en":"It reflects current market expectations about those future amounts.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000104","standard_id":"IFRS13","concept_ids":["IFRS13.TECHNIQUES.TECHNIQUE_SELECTION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000104","tested_point":"QST.IFRS13.000104","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000009","section_id":"rule-select"},"references":["IFRS 13 §61","IFRS 13 §62"],"exercise":{"prompt":{"fr":"","en":"For an instrument, Mervale has observable prices for comparable items and internal cash flow forecasts. What does the standard provide for the choice of valuation technique?","es":""},"explanation":{"fr":"","en":"The technique is chosen among those that are appropriate in the circumstances and for which data are available, maximising the use of relevant observable data (IFRS 13, para. 61). Its objective is to estimate the price of an orderly transaction under current market conditions (IFRS 13, para. 62).","es":""},"common_error":{"fr":"","en":"Preferring internal forecasts to relevant market data.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Choose the technique that is simplest to document, whatever the data available.","es":""},"correct":false,"feedback":{"fr":"","en":"Ease of documentation is not the criterion: the technique must be appropriate in the circumstances and have data available, with maximum use of relevant observable data (IFRS 13). Rule to remember: the choice follows the circumstances and the data available, not convenience (IFRS 13).","es":""}},{"id":"B","text":{"fr":"","en":"Choose techniques suited to the circumstances, maximising relevant observable data.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Choose the technique giving the most prudent amount, so as not to overstate the item.","es":""},"correct":false,"feedback":{"fr":"","en":"Fair value aims at the price of an orderly transaction under current market conditions (IFRS 13), not at the most prudent amount. A choice driven by prudence distorts the estimate. Rule to remember: the objective of the technique is to estimate the market price, not to understate the measurement (IFRS 13).","es":""}},{"id":"D","text":{"fr":"","en":"Choose the technique relying on internal forecasts, because the entity knows them better than the market does.","es":""},"correct":false,"feedback":{"fr":"","en":"Internal forecasts do not take precedence over relevant market data: techniques maximise the use of relevant observable data (IFRS 13). Choosing the internal data by preference means setting market information aside. Rule to remember: relevant observable data come before internal estimates (IFRS 13).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000105","standard_id":"IFRS13","concept_ids":["IFRS13.TECHNIQUES.TECHNIQUE_SELECTION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000105","tested_point":"QST.IFRS13.000105","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000009","section_id":"rule-select"},"references":["IFRS 13 §63","IFRS 13 §61"],"exercise":{"prompt":{"fr":"","en":"An entity applies several valuation techniques to the same instrument and obtains different results. Which statements are consistent with the standard?","es":""},"explanation":{"fr":"","en":"Several techniques may be appropriate for the same item; their results are evaluated considering the reasonableness of the range of values they indicate, fair value being the point within that range that is most representative in the circumstances (IFRS 13, para. 63). No automatic rule (maximum, simple average) is provided.","es":""},"common_error":{"fr":"","en":"Mechanically taking the maximum or the simple average of the results.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It takes the highest result and uses the others only as a check.","es":""},"correct":false,"feedback":{"fr":"","en":"Taking the highest result rests on no criterion: fair value is the point within the range that is most representative in the circumstances (IFRS 13, para. 63). Rule to remember: assess the range, do not take the maximum.","es":""}},{"id":"B","text":{"fr":"","en":"Several techniques may be used to measure the same item.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It takes the simple average of the results, without assessing their respective quality.","es":""},"correct":false,"feedback":{"fr":"","en":"A simple average is not provided for: the results are evaluated considering the reasonableness of the range, and fair value is the most representative point (IFRS 13, para. 63). Rule to remember: no mechanical averaging of indications.","es":""}},{"id":"D","text":{"fr":"","en":"It assesses the reasonableness of the range of values obtained and uses the most representative point.","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"Only one technique is permitted when observable data exist.","es":""},"correct":false,"feedback":{"fr":"","en":"Available observable data do not limit the entity to a single technique: a single technique is appropriate in some cases (for example a quoted price in an active market), several in others (IFRS 13, para. 63). Rule to remember: the number of techniques depends on the circumstances.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000106","standard_id":"IFRS13","concept_ids":["IFRS13.TECHNIQUES.TECHNIQUE_SELECTION"],"dimension":"CALCULATION","context":"V1_VG.IFRS13.000100","tested_point":"VG.IFRS13.000100","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000009","section_id":"rule-select"},"references":["IFRS 13 §63"],"exercise":{"prompt":{"fr":"","en":"Lorvane values an unlisted interest using two techniques: the market approach gives {market_indication} and the income approach {income_indication}. After assessing their relevance and reliability, the valuer uses (case data) weights of {market_weight} and {income_weight}. Compute the weighted fair value.","es":""},"explanation":{"fr":"","en":"Approach: the standard asks to assess the reasonableness of the range and to retain the most representative point (IFRS 13, para. 63); here, fair value is calculated as the weighted average of the two indications. Calculation: 1,240,000 × 60% + 1,180,000 × 40% = 744,000 + 472,000 = 1,216,000. Trap: computing the simple average (1,210,000), which ignores the weights. Case convention: the weighted average and the weights of 60% and 40% are case data, not a rule of the standard. Rule to remember: the case weights are a teaching assumption, not a rule of IFRS 13.","es":""},"common_error":{"fr":"","en":"Taking the simple average of the two indications although the case weights are not equal.","es":""},"format":"CALCULATION","placeholders":[{"id":"market_indication","value":"1240000","unit":"EUR"},{"id":"income_indication","value":"1180000","unit":"EUR"},{"id":"market_weight","value":"60","unit":"PERCENT"},{"id":"income_weight","value":"40","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Market approach indication","es":""},"value":"1240000","unit":"EUR"},{"label":{"fr":"","en":"Income approach indication","es":""},"value":"1180000","unit":"EUR"},{"label":{"fr":"","en":"Market weight","es":""},"value":"60","unit":"PERCENT"},{"label":{"fr":"","en":"Income weight","es":""},"value":"40","unit":"PERCENT"}],"steps":[{"id":"WEIGHTED_FAIR_VALUE","label":{"fr":"","en":"Weighted fair value","es":""},"answer":1216000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"WEIGHTED_FAIR_VALUE","meaning":{"fr":"","en":"Weighted fair value","es":""},"expression":"a * b + c * d","variables":[{"symbol":"a","meaning":{"fr":"","en":"Market approach indication","es":""},"value":1240000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Market weight","es":""},"value":60,"unit":"PERCENT"},{"symbol":"c","meaning":{"fr":"","en":"Income approach indication","es":""},"value":1180000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Income weight","es":""},"value":40,"unit":"PERCENT"}],"result":1216000,"unit":"EUR"}],"rationale":{"fr":"","en":"the case weights are a teaching assumption, not a rule of IFRS 13.","es":""},"references":["REF.IFRS13.63"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000107","standard_id":"IFRS13","concept_ids":["IFRS13.TECHNIQUES.TECHNIQUE_SELECTION"],"dimension":"CALCULATION","context":"V1_VG.IFRS13.000100","tested_point":"VG.IFRS13.000100","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000009","section_id":"rule-select"},"references":["IFRS 13 §63"],"exercise":{"prompt":{"fr":"","en":"For an operating building, Dorvik obtains three indications: {market_result} (market), {income_result} (income) and {cost_result} (cost). Based on its assessment of the relevance and reliability of each technique (case data), it gives them weights of {market_share}, {income_share} and {cost_share} respectively. What is the fair value retained?","es":""},"explanation":{"fr":"","en":"Approach: apply to each indication the weight given by the case, then add up. Calculation: 3,150,000 × 50% + 3,420,000 × 30% + 2,900,000 × 20% = 1,575,000 + 1,026,000 + 580,000 = 3,181,000. Trap: leaving out a technique or dividing by three. Case convention: the weighting of the three indications and the weights are case data, not a rule of the standard. Rule to remember: the case weights are a teaching assumption; for the standard, fair value is the point within the range that is most representative in the circumstances (IFRS 13, para. 63).","es":""},"common_error":{"fr":"","en":"Dividing the sum of the three indications by three instead of applying the case weights.","es":""},"format":"CALCULATION","placeholders":[{"id":"market_result","value":"3150000","unit":"EUR"},{"id":"income_result","value":"3420000","unit":"EUR"},{"id":"cost_result","value":"2900000","unit":"EUR"},{"id":"market_share","value":"50","unit":"PERCENT"},{"id":"income_share","value":"30","unit":"PERCENT"},{"id":"cost_share","value":"20","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Market approach result","es":""},"value":"3150000","unit":"EUR"},{"label":{"fr":"","en":"Income approach result","es":""},"value":"3420000","unit":"EUR"},{"label":{"fr":"","en":"Cost approach result","es":""},"value":"2900000","unit":"EUR"},{"label":{"fr":"","en":"Market weight","es":""},"value":"50","unit":"PERCENT"},{"label":{"fr":"","en":"Income weight","es":""},"value":"30","unit":"PERCENT"},{"label":{"fr":"","en":"Cost weight","es":""},"value":"20","unit":"PERCENT"}],"steps":[{"id":"WEIGHTED_FAIR_VALUE","label":{"fr":"","en":"Weighted fair value","es":""},"answer":3181000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"WEIGHTED_FAIR_VALUE","meaning":{"fr":"","en":"Weighted fair value","es":""},"expression":"a * b + c * d + e * f","variables":[{"symbol":"a","meaning":{"fr":"","en":"Market approach result","es":""},"value":3150000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Market weight","es":""},"value":50,"unit":"PERCENT"},{"symbol":"c","meaning":{"fr":"","en":"Income approach result","es":""},"value":3420000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Income weight","es":""},"value":30,"unit":"PERCENT"},{"symbol":"e","meaning":{"fr":"","en":"Cost approach result","es":""},"value":2900000,"unit":"EUR"},{"symbol":"f","meaning":{"fr":"","en":"Cost weight","es":""},"value":20,"unit":"PERCENT"}],"result":3181000,"unit":"EUR"}],"rationale":{"fr":"","en":"the case weights are a teaching assumption; for the standard, fair value is the point within the range that is most representative in the circumstances (IFRS 13, para. 63).","es":""},"references":["REF.IFRS13.63"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000108","standard_id":"IFRS13","concept_ids":["IFRS13.TECHNIQUES.TECHNIQUE_SELECTION"],"dimension":"ANALYSIS","context":"V1_QST.IFRS13.000108","tested_point":"QST.IFRS13.000108","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000009","section_id":"rule-select"},"references":["IFRS 13 §63","IFRS 13 §61","IFRS 13 §62"],"exercise":{"prompt":{"fr":"","en":"In a file review, a controller examines four valuation practices. Which one is contrary to the expected approach?","es":""},"explanation":{"fr":"","en":"The choice of technique follows the circumstances and the data available, maximising relevant observable inputs (IFRS 13, para. 61); several techniques may be used, their results being evaluated considering the reasonableness of the range (IFRS 13, para. 63). Choosing the technique according to the desired amount does not follow this approach.","es":""},"common_error":{"fr":"","en":"Choosing the technique that produces the expected amount instead of the one appropriate in the circumstances.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Using two techniques and assessing the reasonableness of the range of their results.","es":""},"correct":false,"feedback":{"fr":"","en":"This practice is consistent: several techniques may be used, their results being evaluated considering the reasonableness of the range (IFRS 13, para. 63). The issue lies elsewhere.","es":""}},{"id":"B","text":{"fr":"","en":"Maximising, within the technique chosen, the use of relevant observable data.","es":""},"correct":false,"feedback":{"fr":"","en":"This practice is consistent: techniques maximise the use of relevant observable data (IFRS 13, para. 61). The issue is elsewhere, in the practice that chooses the technique from the desired result.","es":""}},{"id":"C","text":{"fr":"","en":"Choosing the technique that gives the amount management wants, without looking at the data available.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Aiming at the price of an orderly transaction under current market conditions.","es":""},"correct":false,"feedback":{"fr":"","en":"This practice is consistent: the objective of a technique is to estimate the price of an orderly transaction under current market conditions (IFRS 13, para. 62). The issue is not here. Rule to remember: the technique aims at the current market price (para. 62).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000109","standard_id":"IFRS13","concept_ids":["IFRS13.TECHNIQUES.CALIBRATION"],"dimension":"CALCULATION","context":"V1_QST.IFRS13.000109","tested_point":"QST.IFRS13.000109","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000009","section_id":"rule-calibration"},"references":["IFRS 13 §64"],"exercise":{"prompt":{"fr":"","en":"At the acquisition date, Brelinde pays {transaction_price} for an instrument, a price it regards (case data) as its fair value at initial recognition. It will then measure the instrument using a model with unobservable inputs, which gives {initial_technique_result} at that date. Compute the calibration adjustment that makes the model's initial result equal to the transaction price.","es":""},"explanation":{"fr":"","en":"Approach: since the transaction price is, in this case, the initial fair value, the model with unobservable inputs is calibrated so that its initial result equals that price (IFRS 13, para. 64). Calculation: 2,500,000 − 2,380,000 = 120,000, to be added to the model's result. Trap: deducting the difference instead of adding it, which moves the model away from the price. Rule to remember: calibration adjusts the model until its initial result equals the transaction price (para. 64).","es":""},"common_error":{"fr":"","en":"Applying the calibration adjustment with the wrong sign.","es":""},"format":"CALCULATION","placeholders":[{"id":"transaction_price","value":"2500000","unit":"EUR"},{"id":"initial_technique_result","value":"2380000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Transaction price","es":""},"value":"2500000","unit":"EUR"},{"label":{"fr":"","en":"Initial model result","es":""},"value":"2380000","unit":"EUR"}],"steps":[{"id":"CALIBRATION_ADJUSTMENT","label":{"fr":"","en":"Calibration adjustment","es":""},"answer":120000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"CALIBRATION_ADJUSTMENT","meaning":{"fr":"","en":"Calibration adjustment","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Transaction price","es":""},"value":2500000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Initial model result","es":""},"value":2380000,"unit":"EUR"}],"result":120000,"unit":"EUR"}],"rationale":{"fr":"","en":"calibration adjusts the model until its initial result equals the transaction price (para. 64).","es":""},"references":["REF.IFRS13.64"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000110","standard_id":"IFRS13","concept_ids":["IFRS13.TECHNIQUES.CALIBRATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000110","tested_point":"QST.IFRS13.000110","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":105,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000009","section_id":"rule-calibration"},"references":["IFRS 13 §64"],"exercise":{"prompt":{"fr":"","en":"The transaction price of an instrument is its fair value at initial recognition, and the entity will subsequently use a technique with unobservable inputs. Why does it calibrate that technique?","es":""},"explanation":{"fr":"","en":"When the transaction price is the initial fair value and a technique with unobservable inputs will be used subsequently, it is calibrated so that its initial result equals the transaction price (IFRS 13, para. 64). Calibration ensures that the technique reflects current market conditions and helps determine whether an adjustment is needed (para. 64).","es":""},"common_error":{"fr":"","en":"Thinking calibration is used to generate an initial profit.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"To show a profit at the date of initial recognition.","es":""},"correct":false,"feedback":{"fr":"","en":"Calibration is not meant to create a profit: it brings the technique's initial result back to the transaction price, so that the initial difference is neutralised (IFRS 13, para. 64). Rule to remember: calibrating aligns the technique with the initial market price, it does not create a gain (para. 64).","es":""}},{"id":"B","text":{"fr":"","en":"So that its initial result equals the transaction price and reflects current market conditions.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"To replace the unobservable inputs with Level 1 inputs from the first date.","es":""},"correct":false,"feedback":{"fr":"","en":"Calibration does not change the nature of the inputs: a technique with unobservable inputs remains one, and only its initial result is aligned with the transaction price (IFRS 13, para. 64). Levels belong to the hierarchy, not to calibration. Rule to remember: calibrating adjusts the result, not the level of the inputs (para. 64).","es":""}},{"id":"D","text":{"fr":"","en":"So as no longer to have to check the technique at subsequent reporting dates.","es":""},"correct":false,"feedback":{"fr":"","en":"Calibration aligns the initial result with the price (IFRS 13, para. 64); it does not relieve the entity from applying the technique consistently and checking that it reflects market conditions (para. 64). Rule to remember: calibration helps determine whether an adjustment is needed, it replaces no later check (para. 64).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000111","standard_id":"IFRS13","concept_ids":["IFRS13.TECHNIQUES.CALIBRATION"],"dimension":"ANALYSIS","context":"V1_QST.IFRS13.000111","tested_point":"QST.IFRS13.000111","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":105,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000009","section_id":"rule-calibration"},"references":["IFRS 13 §64"],"exercise":{"prompt":{"fr":"","en":"A model with unobservable inputs gives 4,100,000 at the acquisition date of an instrument paid 4,300,000, a price regarded as its initial fair value (case data). Which of these analyses of calibration is wrong?","es":""},"explanation":{"fr":"","en":"For the initial result to equal the transaction price (IFRS 13, para. 64), the model's result must be raised by 200,000 (4,300,000 − 4,100,000), not lowered: lowering it would widen the gap to 400,000. The adjustment aims to reflect current market conditions (para. 64).","es":""},"common_error":{"fr":"","en":"Applying the calibration adjustment with the wrong sign.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Calibration aims to make the model's initial result equal to the transaction price.","es":""},"correct":false,"feedback":{"fr":"","en":"This analysis is correct: when the transaction price is the initial fair value, the technique is calibrated so that its initial result equals that price (IFRS 13, para. 64). The error lies in the sentence giving the wrong direction of adjustment. Rule to remember: the aim of calibration is initial equality between result and price (para. 64).","es":""}},{"id":"B","text":{"fr":"","en":"The model will be calibrated before being used to measure the instrument at subsequent dates.","es":""},"correct":false,"feedback":{"fr":"","en":"This analysis is correct: the technique with unobservable inputs is calibrated before its subsequent use (IFRS 13, para. 64). The error concerns the direction of the quantified adjustment. Rule to remember: calibration precedes the later use of the model (para. 64).","es":""}},{"id":"C","text":{"fr":"","en":"Calibration helps check that the model reflects current market conditions.","es":""},"correct":false,"feedback":{"fr":"","en":"This analysis is correct: calibration ensures that the technique reflects current market conditions (IFRS 13, para. 64). The error is in the sign of the adjustment, not in this purpose. Rule to remember: calibration helps determine whether an adjustment is needed (para. 64).","es":""}},{"id":"D","text":{"fr":"","en":"Since the initial result is below the price, calibration lowers the model's result by 200,000.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000112","standard_id":"IFRS13","concept_ids":["IFRS13.TECHNIQUES.CHANGE_OF_TECHNIQUE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000112","tested_point":"QST.IFRS13.000112","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000009","section_id":"rule-select"},"references":["IFRS 13 §65"],"exercise":{"prompt":{"fr":"","en":"During the year, an entity considers dropping the technique it used to measure an instrument. In which case is the change appropriate?","es":""},"explanation":{"fr":"","en":"Valuation techniques are applied consistently; a change is appropriate only if it leads to a measurement that is equally or more representative of fair value (IFRS 13, para. 65). Neither proximity to a budget, nor a valuer's preference, nor the smoothing of results is that criterion.","es":""},"common_error":{"fr":"","en":"Changing technique to obtain a more favourable result.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"When it leads to a measurement that is equally or more representative of fair value.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"When it brings the fair value closer to the amount in the year's budget.","es":""},"correct":false,"feedback":{"fr":"","en":"The budget is not a criterion of representativeness: a change is appropriate only if it leads to a measurement that is equally or more representative of fair value (IFRS 13, para. 65). Choosing the technique to approach a target diverts the measurement from its purpose. Rule to remember: the test is the representativeness of fair value, not proximity to a target (para. 65).","es":""}},{"id":"C","text":{"fr":"","en":"When a new valuer prefers another technique, whatever the result obtained.","es":""},"correct":false,"feedback":{"fr":"","en":"A personal preference does not justify a change: techniques are applied consistently, and the new choice must lead to a measurement that is equally or more representative (IFRS 13, para. 65). Rule to remember: a change is justified by representativeness, not by the result or by the preparer (para. 65).","es":""}},{"id":"D","text":{"fr":"","en":"When it reduces the volatility of the reported results from one period to the next.","es":""},"correct":false,"feedback":{"fr":"","en":"Smoothing reported results is not a reason: fair value volatility may reflect market movements. The standard allows a change only if it leads to a measurement that is equally or more representative of fair value (IFRS 13, para. 65). Rule to remember: one does not change technique to dampen volatility (para. 65).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000113","standard_id":"IFRS13","concept_ids":["IFRS13.TECHNIQUES.CHANGE_OF_TECHNIQUE"],"dimension":"ANALYSIS","context":"V1_QST.IFRS13.000113","tested_point":"QST.IFRS13.000113","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000009","section_id":"rule-select"},"references":["IFRS 13 §65"],"exercise":{"prompt":{"fr":"","en":"A management controller reviews four decisions about the valuation technique for the same portfolio. Which one is open to challenge?","es":""},"explanation":{"fr":"","en":"A change of technique is appropriate only if it leads to a measurement that is equally or more representative of fair value (IFRS 13, para. 65). Changing because the new technique gives a higher amount, without any gain in representativeness, does not meet this criterion.","es":""},"common_error":{"fr":"","en":"Changing technique to obtain a more favourable result.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Moving to another technique because new market data make it more representative.","es":""},"correct":false,"feedback":{"fr":"","en":"This decision is defensible: a change is appropriate if it leads to a measurement that is equally or more representative of fair value, which is the case when new data improve representativeness (IFRS 13, para. 65). Rule to remember: better representativeness justifies a change (para. 65).","es":""}},{"id":"B","text":{"fr":"","en":"Moving to a technique of equal representativeness that is simpler to update at each reporting date.","es":""},"correct":false,"feedback":{"fr":"","en":"This decision is defensible: the standard allows a change that leads to a measurement that is equally or more representative (IFRS 13, para. 65); equal representativeness is enough, simplicity being an operational advantage. Rule to remember: equal representativeness does not preclude a change (para. 65).","es":""}},{"id":"C","text":{"fr":"","en":"Moving to another technique because it gives a higher fair value, without better representativeness.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Keeping the same technique from one year to the next, applied consistently.","es":""},"correct":false,"feedback":{"fr":"","en":"This decision is consistent: techniques are applied consistently (IFRS 13, para. 65). Keeping the technique is not a change and so raises no question of justification. Rule to remember: consistent application is the rule, a change the justified exception (para. 65).","es":""}},{"id":"E","text":{"fr":"","en":"Going back to the former technique after finding that the new one was less representative.","es":""},"correct":false,"feedback":{"fr":"","en":"This decision is defensible: going back to the technique that best represents fair value meets the criterion of a measurement that is equally or more representative (IFRS 13, para. 65). Rule to remember: the criterion also applies to a return to the former technique (para. 65).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000114","standard_id":"IFRS13","concept_ids":["IFRS13.TECHNIQUES.PV_TECHNIQUES"],"dimension":"CALCULATION","context":"V1_VG.IFRS13.000101","tested_point":"VG.IFRS13.000101","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000009","section_id":"rule-pv"},"references":["IFRS 13 §B17","IFRS 13 §B21"],"exercise":{"prompt":{"fr":"","en":"An instrument will provide a single cash flow of {amount} in {periods}. The rate observed on comparable items with similar cash flows is {rate}. Using the discount rate adjustment technique, compute the instrument's fair value.","es":""},"explanation":{"fr":"","en":"Approach: a single set of cash flows is discounted at the rate observed on comparable items (IFRS 13, paras. B17 and B21). Calculation: 2,662,000 / 1.331 = 2,000,000, since 1.10 × 1.10 × 1.10 = 1.331. Trap: multiplying by 1.331 instead of dividing, or discounting over one year only. Rule to remember: the discount rate adjustment technique discounts a single set of cash flows at a rate observed on comparable items with similar cash flows (paras. B17 and B21).","es":""},"common_error":{"fr":"","en":"Forgetting to raise the discount factor to the power of the number of periods.","es":""},"format":"CALCULATION","placeholders":[{"id":"amount","value":"2662000","unit":"EUR"},{"id":"rate","value":"10","unit":"PERCENT"},{"id":"periods","value":"3","unit":"YEARS"}],"data":[{"label":{"fr":"","en":"Expected cash flow","es":""},"value":"2662000","unit":"EUR"},{"label":{"fr":"","en":"Rate observed on comparable items","es":""},"value":"10","unit":"PERCENT"},{"label":{"fr":"","en":"Time before the cash flow","es":""},"value":"3","unit":"YEARS"}],"steps":[{"id":"FAIR_VALUE","label":{"fr":"","en":"Fair value","es":""},"answer":2000000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"FAIR_VALUE","meaning":{"fr":"","en":"Fair value","es":""},"expression":"a / (1 + b)^3","variables":[{"symbol":"a","meaning":{"fr":"","en":"Expected cash flow","es":""},"value":2662000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Rate observed on comparable items","es":""},"value":10,"unit":"PERCENT"}],"result":2000000,"unit":"EUR"}],"rationale":{"fr":"","en":"the discount rate adjustment technique discounts a single set of cash flows at a rate observed on comparable items with similar cash flows (paras. B17 and B21).","es":""},"references":["REF.IFRS13.B17","REF.IFRS13.B21"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000115","standard_id":"IFRS13","concept_ids":["IFRS13.TECHNIQUES.PV_TECHNIQUES"],"dimension":"CALCULATION","context":"V1_VG.IFRS13.000101","tested_point":"VG.IFRS13.000101","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000009","section_id":"rule-pv"},"references":["IFRS 13 §B17","IFRS 13 §B21"],"exercise":{"prompt":{"fr":"","en":"A receivable from a third party will pay {cash_flow} at maturity, in {years_to_flow}. Comparable items with similar cash flows are discounted at the observed rate of {observed_rate}. What fair value does the discount rate adjustment technique give?","es":""},"explanation":{"fr":"","en":"Approach: discount the single cash flow at the rate observed on comparable items (IFRS 13, paras. B17 and B21). Calculation: 1,574,640 / (1.08 × 1.08) = 1,574,640 / 1.1664 = 1,350,000. Trap: keeping the undiscounted flow (1,574,640) or discounting for one period only (1,458,000). Rule to remember: the present value of a single cash flow is computed at the rate observed on comparable items with similar cash flows (paras. B17 and B21).","es":""},"common_error":{"fr":"","en":"Not discounting the cash flow, or discounting it over one period only.","es":""},"format":"CALCULATION","placeholders":[{"id":"cash_flow","value":"1574640","unit":"EUR"},{"id":"observed_rate","value":"8","unit":"PERCENT"},{"id":"years_to_flow","value":"2","unit":"YEARS"}],"data":[{"label":{"fr":"","en":"Cash flow to be received","es":""},"value":"1574640","unit":"EUR"},{"label":{"fr":"","en":"Observed rate","es":""},"value":"8","unit":"PERCENT"},{"label":{"fr":"","en":"Time to maturity","es":""},"value":"2","unit":"YEARS"}],"steps":[{"id":"FAIR_VALUE","label":{"fr":"","en":"Fair value","es":""},"answer":1350000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"FAIR_VALUE","meaning":{"fr":"","en":"Fair value","es":""},"expression":"a / ((1 + b) * (1 + b))","variables":[{"symbol":"a","meaning":{"fr":"","en":"Cash flow to be received","es":""},"value":1574640,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Observed rate","es":""},"value":8,"unit":"PERCENT"}],"result":1350000,"unit":"EUR"}],"rationale":{"fr":"","en":"the present value of a single cash flow is computed at the rate observed on comparable items with similar cash flows (paras. B17 and B21).","es":""},"references":["REF.IFRS13.B17","REF.IFRS13.B21"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000116","standard_id":"IFRS13","concept_ids":["IFRS13.TECHNIQUES.PV_TECHNIQUES"],"dimension":"CALCULATION","context":"V1_QST.IFRS13.000116","tested_point":"QST.IFRS13.000116","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000009","section_id":"rule-pv"},"references":["IFRS 13 §B23"],"exercise":{"prompt":{"fr":"","en":"To value an asset using the expected present value technique, an entity uses (case data) three possible annual cash flows: {flow_low} with a probability of {prob_low}, {flow_mid} with {prob_mid} and {flow_high} with {prob_high}. Compute the expected cash flow, before discounting.","es":""},"explanation":{"fr":"","en":"Approach: weight each possible cash flow by its probability, before discounting using the method chosen (risk reflected in the cash flows or in the rate) (IFRS 13, para. B23). Calculation: 250,000 × 25% + 420,000 × 45% + 700,000 × 30% = 62,500 + 189,000 + 210,000 = 461,500. Trap: taking the simple average of the three flows (456,667), which ignores the probabilities. Rule to remember: the expected present value technique rests on cash flows weighted by their probability (para. B23).","es":""},"common_error":{"fr":"","en":"Taking the simple average of the possible cash flows instead of weighting them by their probability.","es":""},"format":"CALCULATION","placeholders":[{"id":"flow_low","value":"250000","unit":"EUR"},{"id":"prob_low","value":"25","unit":"PERCENT"},{"id":"flow_mid","value":"420000","unit":"EUR"},{"id":"prob_mid","value":"45","unit":"PERCENT"},{"id":"flow_high","value":"700000","unit":"EUR"},{"id":"prob_high","value":"30","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Low cash flow","es":""},"value":"250000","unit":"EUR"},{"label":{"fr":"","en":"Probability of the low cash flow","es":""},"value":"25","unit":"PERCENT"},{"label":{"fr":"","en":"Intermediate cash flow","es":""},"value":"420000","unit":"EUR"},{"label":{"fr":"","en":"Probability of the intermediate cash flow","es":""},"value":"45","unit":"PERCENT"},{"label":{"fr":"","en":"High cash flow","es":""},"value":"700000","unit":"EUR"},{"label":{"fr":"","en":"Probability of the high cash flow","es":""},"value":"30","unit":"PERCENT"}],"steps":[{"id":"EXPECTED_CASH_FLOW","label":{"fr":"","en":"Expected cash flow","es":""},"answer":461500,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"EXPECTED_CASH_FLOW","meaning":{"fr":"","en":"Expected cash flow","es":""},"expression":"a * b + c * d + e * f","variables":[{"symbol":"a","meaning":{"fr":"","en":"Low cash flow","es":""},"value":250000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Probability of the low cash flow","es":""},"value":25,"unit":"PERCENT"},{"symbol":"c","meaning":{"fr":"","en":"Intermediate cash flow","es":""},"value":420000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Probability of the intermediate cash flow","es":""},"value":45,"unit":"PERCENT"},{"symbol":"e","meaning":{"fr":"","en":"High cash flow","es":""},"value":700000,"unit":"EUR"},{"symbol":"f","meaning":{"fr":"","en":"Probability of the high cash flow","es":""},"value":30,"unit":"PERCENT"}],"result":461500,"unit":"EUR"}],"rationale":{"fr":"","en":"the expected present value technique rests on cash flows weighted by their probability (para. B23).","es":""},"references":["REF.IFRS13.B23"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000117","standard_id":"IFRS13","concept_ids":["IFRS13.TECHNIQUES.PV_TECHNIQUES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000117","tested_point":"QST.IFRS13.000117","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000009","section_id":"rule-pv"},"references":["IFRS 13 §B14","IFRS 13 §B16","IFRS 13 §B21","IFRS 13 §B17"],"exercise":{"prompt":{"fr":"","en":"Which of the following statements about present value techniques are consistent with the standard?","es":""},"explanation":{"fr":"","en":"A present value requires consistent cash flows and rate (inflation, currency, risk) (IFRS 13, para. B14). The discount rate adjustment technique discounts a single set of cash flows at a rate derived from comparable items, whereas expected present value starts from probability-weighted cash flows and treats risk in the cash flows or in the rate (IFRS 13, paras. B17 and B21). Time value alone does not reflect the uncertainty of cash flows, which calls for a risk premium (IFRS 13, para. B16).","es":""},"common_error":{"fr":"","en":"Mixing nominal cash flows and a real rate.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The estimated cash flows and the discount rate must be consistent with each other, in particular as to inflation, currency and risk.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Nominal cash flows may be discounted at a real rate, without adjustment.","es":""},"correct":false,"feedback":{"fr":"","en":"Mixing nominal cash flows and a real rate makes flows and rate inconsistent on inflation: the result is distorted (IFRS 13, para. B14). Rule to remember: nominal cash flows with a nominal rate, real cash flows with a real rate.","es":""}},{"id":"C","text":{"fr":"","en":"In the discount rate adjustment technique, a single set of cash flows is discounted at a rate observed on comparable items with similar cash flows.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"In the expected present value technique, cash flows are probability-weighted; risk is then reflected either in the cash flows (Method 1) or in the rate (Method 2).","es":""},"correct":true},{"id":"E","text":{"fr":"","en":"The time value of money is enough to reflect the uncertainty of the cash flows.","es":""},"correct":false,"feedback":{"fr":"","en":"Time value alone is not enough: the measurement includes a risk premium for the uncertainty of cash flows (IFRS 13, para. B16). Rule to remember: uncertainty is reflected through the risk premium, not through time value alone.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000118","standard_id":"IFRS13","concept_ids":["IFRS13.TECHNIQUES.PV_TECHNIQUES"],"dimension":"ANALYSIS","context":"V1_QST.IFRS13.000118","tested_point":"QST.IFRS13.000118","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000009","section_id":"rule-pv"},"references":["IFRS 13 §B14"],"exercise":{"prompt":{"fr":"","en":"An analyst values an asset by discounting forecast cash flows in current money, inflation included, at a real market interest rate. What is the flaw in this calculation?","es":""},"explanation":{"fr":"","en":"The estimated cash flows and the discount rate must rest on consistent assumptions (inflation, currency, risk) (IFRS 13, para. B14). Discounting nominal cash flows at a real rate mixes two inflation assumptions and distorts the present value.","es":""},"common_error":{"fr":"","en":"Mixing nominal cash flows and a real rate.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It omits the asset's market value, which must be added to the present value.","es":""},"correct":false,"feedback":{"fr":"","en":"The present value is precisely the measurement sought: no separate market value is added to it. The flaw comes from the inconsistency between cash flows and rate (IFRS 13, para. B14). Rule to remember: a present value is judged on the consistency of assumptions between cash flows and rate (para. B14).","es":""}},{"id":"B","text":{"fr":"","en":"It combines nominal cash flows with a real rate, inconsistent on inflation.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"He uses a rate observed in the market, whereas he should use the entity's own cost of capital.","es":""},"correct":false,"feedback":{"fr":"","en":"The entity's own cost of capital is not the reference: cash flows and rate rest on market participants' assumptions (IFRS 13, para. B14). The problem is the combination of a real rate with nominal cash flows. Rule to remember: a market rate is acceptable if consistent with the cash flows (para. B14).","es":""}},{"id":"D","text":{"fr":"","en":"It discounts over several periods, whereas a present value is computed over a single one.","es":""},"correct":false,"feedback":{"fr":"","en":"Discounting over several periods is normal when cash flows are spread over time; it is not the flaw identified here. The problem is the inconsistency between nominal cash flows and a real rate (IFRS 13, para. B14). Rule to remember: the number of periods does not replace consistency between cash flows and rate (para. B14).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000119","standard_id":"IFRS13","concept_ids":["IFRS13.INPUTS.OBSERVABLE_UNOBSERVABLE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000119","tested_point":"QST.IFRS13.000119","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":55,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000010","section_id":"rule-obs"},"references":["IFRS 13 §67"],"exercise":{"prompt":{"fr":"","en":"Which general rule applies to the inputs used by a fair value valuation technique?","es":""},"explanation":{"fr":"","en":"Valuation techniques maximise the use of relevant observable inputs and minimise the use of unobservable inputs (IFRS 13, para. 67). Neither a preference for internal data, nor a balance, nor ease of obtaining is the criterion.","es":""},"common_error":{"fr":"","en":"Retaining an internal estimate when an observable market input is available.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Favour the entity's internal estimates, because they describe the item being measured better than market data.","es":""},"correct":false,"feedback":{"fr":"","en":"Internal estimates do not come before relevant market data: the technique maximises the use of observable inputs and minimises the use of unobservable inputs (IFRS 13, para. 67). Preferring the internal by principle reverses this priority. Rule to remember: relevant observable inputs come before internal estimates (para. 67).","es":""}},{"id":"B","text":{"fr":"","en":"Combine observable and unobservable inputs in equal parts, to limit the risk of error.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard asks for no equal-parts mix: techniques maximise the use of relevant observable inputs and minimise the use of unobservable inputs (IFRS 13, para. 67). A balanced mix would give too much weight to the internal estimate. Rule to remember: the priority goes to observable inputs, not to a balance (para. 67).","es":""}},{"id":"C","text":{"fr":"","en":"Use the inputs that are easiest to obtain, provided they are documented in the file.","es":""},"correct":false,"feedback":{"fr":"","en":"Ease of obtaining is not a selection criterion: what matters is the relevance and the observable nature of the inputs (IFRS 13, para. 67). An input that is easy to obtain but unobservable should be kept to a minimum. Rule to remember: the technique maximises relevant observable inputs, whatever the convenience (para. 67).","es":""}},{"id":"D","text":{"fr":"","en":"Maximise the use of relevant observable inputs and minimise the use of unobservable inputs.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000120","standard_id":"IFRS13","concept_ids":["IFRS13.INPUTS.OBSERVABLE_UNOBSERVABLE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000120","tested_point":"QST.IFRS13.000120","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000010","section_id":"rule-obs"},"references":["IFRS 13 §68","IFRS 13 §67"],"exercise":{"prompt":{"fr":"","en":"Which of the following sources can provide prices used as observable inputs?","es":""},"explanation":{"fr":"","en":"Prices from markets such as exchanges, brokered, dealer and over-the-counter markets serve as observable inputs (IFRS 13, para. 68). A budget or an internal estimate is not a market price: it is an unobservable input, the use of which is minimised (para. 67).","es":""},"common_error":{"fr":"","en":"Treating an internal forecast as an observable input.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"A stock exchange.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The internal budget forecasts approved by the entity's management.","es":""},"correct":false,"feedback":{"fr":"","en":"An internal budget expresses the entity's expectations, not prices formed in a market. The markets whose prices serve as observable inputs are exchanges, brokered, dealer and over-the-counter markets (IFRS 13, para. 68). Rule to remember: an observable input comes from the market, not from an internal forecast (para. 68).","es":""}},{"id":"C","text":{"fr":"","en":"A dealer market.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"An estimate prepared by management accounting from its own assumptions.","es":""},"correct":false,"feedback":{"fr":"","en":"An estimate based on management accounting's own assumptions remains an internal input, however detailed. Observable inputs are drawn from market prices, for example those of exchanges or over-the-counter markets (IFRS 13, para. 68). Rule to remember: the origin of the price, market or internal, separates observable from unobservable (paras. 67 and 68).","es":""}},{"id":"E","text":{"fr":"","en":"An over-the-counter market.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000121","standard_id":"IFRS13","concept_ids":["IFRS13.INPUTS.OBSERVABLE_UNOBSERVABLE"],"dimension":"ANALYSIS","context":"V1_QST.IFRS13.000121","tested_point":"QST.IFRS13.000121","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":55,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000010","section_id":"rule-obs"},"references":["IFRS 13 §67","IFRS 13 §68"],"exercise":{"prompt":{"fr":"","en":"In a review of a valuation file, a controller examines four practices relating to inputs. Which one is contrary to the standard?","es":""},"explanation":{"fr":"","en":"Techniques maximise the use of relevant observable inputs and minimise the use of unobservable inputs (IFRS 13, para. 67); dealer market prices serve as observable inputs (para. 68). Retaining an internal estimate when a relevant observable price is available contradicts this priority.","es":""},"common_error":{"fr":"","en":"Retaining an internal estimate when an observable market input is available.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Retaining an internal estimate when a relevant observable price is available in the market.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Using a dealer market quotation as an observable input for a security traded there.","es":""},"correct":false,"feedback":{"fr":"","en":"This practice is consistent: dealer market prices serve as observable inputs (IFRS 13, para. 68). The issue is elsewhere, in the practice that ignores an available market price. Rule to remember: dealer prices are a source of observable inputs (para. 68).","es":""}},{"id":"C","text":{"fr":"","en":"Looking first for relevant observable inputs before resorting to internal estimates.","es":""},"correct":false,"feedback":{"fr":"","en":"This practice is consistent: the technique maximises the use of relevant observable inputs, which should therefore be sought first (IFRS 13, para. 67). The issue lies in the practice that does the opposite. Rule to remember: look first for the relevant observable (para. 67).","es":""}},{"id":"D","text":{"fr":"","en":"Minimising, within the technique chosen, the use of unobservable inputs.","es":""},"correct":false,"feedback":{"fr":"","en":"This practice is consistent: minimising the use of unobservable inputs is exactly what valuation techniques call for (IFRS 13, para. 67). The issue is in the practice that prefers internal data to the market. Rule to remember: minimise the unobservable, maximise the relevant observable (para. 67).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000122","standard_id":"IFRS13","concept_ids":["IFRS13.INPUTS.OBSERVABLE_UNOBSERVABLE"],"dimension":"APPLICATION","context":"V1_QST.IFRS13.000122","tested_point":"QST.IFRS13.000122","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":55,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000010","section_id":"rule-obs"},"references":["IFRS 13 §67","IFRS 13 §68"],"exercise":{"prompt":{"fr":"","en":"To value a debt security, Salvane uses a model whose inputs are: (1) an interest rate published daily by dealers in their market and (2) a margin set internally, with no reference to market data. How should the entity treat these two inputs?","es":""},"explanation":{"fr":"","en":"The rate published by dealers comes from a market: it is an observable input (IFRS 13, para. 68). The internally set margin, with no reference to the market, is unobservable; the technique maximises the use of the former and minimises that of the latter (para. 67).","es":""},"common_error":{"fr":"","en":"Regarding an internal input as observable because it feeds a market-based model.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It regards both as observable, since they feed a market-based model.","es":""},"correct":false,"feedback":{"fr":"","en":"Feeding a model does not make an internal input observable. An input drawn from market prices, such as the dealers' rate, is observable (IFRS 13, para. 68); the internally set margin remains unobservable and its use is minimised (para. 67). Rule to remember: the origin of the input, not the model, determines whether it is observable (paras. 67 and 68).","es":""}},{"id":"B","text":{"fr":"","en":"The rate is observable, the margin unobservable, and the technique minimises the weight of the latter.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It regards both as unobservable, since they go through an internal model.","es":""},"correct":false,"feedback":{"fr":"","en":"Going through a model does not make an input drawn from a dealer market unobservable: the published rate serves as an observable input (IFRS 13, para. 68). The internally set margin, by contrast, is unobservable. Rule to remember: a market input stays observable even when a model uses it (para. 68).","es":""}},{"id":"D","text":{"fr":"","en":"It treats the margin as observable, because it is specific to the entity, and the rate as unobservable.","es":""},"correct":false,"feedback":{"fr":"","en":"A margin specific to the entity is not observable: the observable comes from the market, not from the entity (IFRS 13, para. 68). Swapping the two inputs would maximise the internal and minimise the market, which is the opposite of the rule. Rule to remember: entity-specific means unobservable (para. 67).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000123","standard_id":"IFRS13","concept_ids":["IFRS13.INPUTS.PREMIUMS_DISCOUNTS"],"dimension":"ANALYSIS","context":"V1_QST.IFRS13.000123","tested_point":"QST.IFRS13.000123","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":105,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000010","section_id":"rule-premium"},"references":["IFRS 13 §69"],"exercise":{"prompt":{"fr":"","en":"A controller reviews the input adjustments in a valuation file. Which one is contrary to the standard?","es":""},"explanation":{"fr":"","en":"Inputs are consistent with the characteristics of the item measured; a premium or discount linked to the size of the entity's position (blockage discount) is not permitted (IFRS 13, para. 69). The 8% discount on a quoted interest because of its size is therefore the adjustment to reject.","es":""},"common_error":{"fr":"","en":"Applying a blockage discount to a quoted interest.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"An 8% discount on the quoted price, on the grounds that the size of the position exceeds the traded volume.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"An adjustment linked to the location of the asset where this is one of its characteristics.","es":""},"correct":false,"feedback":{"fr":"","en":"This adjustment is acceptable: location is a characteristic of the asset that market participants would take into account (IFRS 13, para. 69). The issue is in the adjustment that depends on the quantity held. Rule to remember: location is a characteristic, the size of the position is not (para. 69).","es":""}},{"id":"C","text":{"fr":"","en":"A discount linked to the condition of the asset, which market participants would take into account.","es":""},"correct":false,"feedback":{"fr":"","en":"This discount is acceptable: inputs are consistent with the characteristics of the item, of which condition is one (IFRS 13, para. 69). The adjustment contrary to the standard is the one based on the size of the position. Rule to remember: a discount linked to a characteristic of the item is permitted (para. 69).","es":""}},{"id":"D","text":{"fr":"","en":"No adjustment of the market price for the size of the position held.","es":""},"correct":false,"feedback":{"fr":"","en":"This practice is consistent: since a discount linked to the size of the position is not permitted, not adjusting the price for that size is correct (IFRS 13, para. 69). Rule to remember: the market price is not corrected for the size of the position held (para. 69).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000124","standard_id":"IFRS13","concept_ids":["IFRS13.INPUTS.PREMIUMS_DISCOUNTS"],"dimension":"CALCULATION","context":"V1_VG.IFRS13.000102","tested_point":"VG.IFRS13.000102","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000010","section_id":"rule-premium"},"references":["IFRS 13 §69"],"exercise":{"prompt":{"fr":"","en":"A comparable asset is valued at {reference_value}. The asset being measured is in a less favourable condition; market participants would apply a discount of {characteristic_discount} (case data), linked to that characteristic of the asset and not to the quantity held by the entity. What is the fair value of the asset being measured?","es":""},"explanation":{"fr":"","en":"Approach: the discount reflects a characteristic of the item (its condition), so it is compatible with inputs consistent with its characteristics (IFRS 13, para. 69). Calculation: discount = 800,000 × 12% = 96,000; fair value = 800,000 − 96,000 = 704,000. Trap: confusing this discount with a position-size discount, which is not permitted. Case convention: the 12% rate is case data, not a rule. Rule to remember: a discount linked to a characteristic of the item is allowed, one linked to the size of the position is not (para. 69).","es":""},"common_error":{"fr":"","en":"Deducting 12 points from the value instead of applying 12% to the amount.","es":""},"format":"CALCULATION","placeholders":[{"id":"reference_value","value":"800000","unit":"EUR"},{"id":"characteristic_discount","value":"12","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Value of the comparable asset","es":""},"value":"800000","unit":"EUR"},{"label":{"fr":"","en":"Discount linked to the condition of the asset","es":""},"value":"12","unit":"PERCENT"}],"steps":[{"id":"FAIR_VALUE","label":{"fr":"","en":"Fair value","es":""},"answer":704000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"FAIR_VALUE","meaning":{"fr":"","en":"Fair value","es":""},"expression":"a - (a * b)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Value of the comparable asset","es":""},"value":800000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Discount linked to the condition of the asset","es":""},"value":12,"unit":"PERCENT"}],"result":704000,"unit":"EUR"}],"rationale":{"fr":"","en":"a discount linked to a characteristic of the item is allowed, one linked to the size of the position is not (para. 69).","es":""},"references":["REF.IFRS13.69"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000125","standard_id":"IFRS13","concept_ids":["IFRS13.INPUTS.PREMIUMS_DISCOUNTS"],"dimension":"CALCULATION","context":"V1_VG.IFRS13.000102","tested_point":"VG.IFRS13.000102","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000010","section_id":"rule-premium"},"references":["IFRS 13 §69"],"exercise":{"prompt":{"fr":"","en":"A comparable warehouse sold for {comparable_price}. The warehouse being measured is better located: market participants would pay a premium of {location_premium} (case data) for this location, a characteristic of the asset. The entity holds a single unit, unrelated to the size of its position. Compute the fair value of the warehouse being measured.","es":""},"explanation":{"fr":"","en":"Approach: the premium relates to location, a characteristic of the asset (IFRS 13, para. 69); no premium or discount here depends on the size of the position. Calculation: premium = 1,250,000 × 6% = 75,000; fair value = 1,250,000 + 75,000 = 1,325,000. Trap: deducting the premium instead of adding it. Case convention: the 6% rate is case data. Rule to remember: a premium linked to a characteristic of the item is consistent with the inputs, one linked to the size of the position is not (para. 69).","es":""},"common_error":{"fr":"","en":"Applying the sign of a discount to a location premium.","es":""},"format":"CALCULATION","placeholders":[{"id":"comparable_price","value":"1250000","unit":"EUR"},{"id":"location_premium","value":"6","unit":"PERCENT"}],"data":[{"label":{"fr":"","en":"Price of the comparable warehouse","es":""},"value":"1250000","unit":"EUR"},{"label":{"fr":"","en":"Location premium","es":""},"value":"6","unit":"PERCENT"}],"steps":[{"id":"FAIR_VALUE","label":{"fr":"","en":"Fair value","es":""},"answer":1325000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"FAIR_VALUE","meaning":{"fr":"","en":"Fair value","es":""},"expression":"a + (a * b)","variables":[{"symbol":"a","meaning":{"fr":"","en":"Price of the comparable warehouse","es":""},"value":1250000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Location premium","es":""},"value":6,"unit":"PERCENT"}],"result":1325000,"unit":"EUR"}],"rationale":{"fr":"","en":"a premium linked to a characteristic of the item is consistent with the inputs, one linked to the size of the position is not (para. 69).","es":""},"references":["REF.IFRS13.69"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000127","standard_id":"IFRS13","concept_ids":["IFRS13.INPUTS.BID_ASK"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000127","tested_point":"QST.IFRS13.000127","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000010","section_id":"rule-bidask"},"references":["IFRS 13 §70","IFRS 13 §71"],"exercise":{"prompt":{"fr":"","en":"An instrument traded on a dealer market shows a bid price of 51.80 and an ask price of 52.40. Which price does the standard use for fair value?","es":""},"explanation":{"fr":"","en":"When a bid price and an ask price exist, the price used is the one within the spread that is most representative of fair value in the circumstances (IFRS 13, para. 70). The use of mid-market pricing or other market conventions is permitted but not required (para. 71).","es":""},"common_error":{"fr":"","en":"Imposing the mid-market price for all measurements.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The mid-market price, which the standard requires for all measurements to avoid any judgement.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard does not require the mid-market price: it permits the use of mid-market pricing or other pricing conventions without making them mandatory (IFRS 13, para. 71). The price used is the one within the spread that is most representative in the circumstances (para. 70). Rule to remember: mid-market is permitted, not imposed (para. 71).","es":""}},{"id":"B","text":{"fr":"","en":"The bid price, because it is the most prudent and does not risk overstating the instrument.","es":""},"correct":false,"feedback":{"fr":"","en":"Prudence is not the criterion: the price used within the spread is the one most representative of fair value in the circumstances (IFRS 13, para. 70). Systematically choosing the bid price may understate the instrument. Rule to remember: the aim is representativeness, not prudence (para. 70).","es":""}},{"id":"C","text":{"fr":"","en":"The ask price, because the entity plans to buy other securities of the same class.","es":""},"correct":false,"feedback":{"fr":"","en":"The entity's purchase intentions do not determine the price: fair value is the most representative price within the spread, given the circumstances (IFRS 13, para. 70). Choosing the ask price for that reason would tailor the measurement to the entity's situation. Rule to remember: the spread is read according to representativeness, not the entity's intention (para. 70).","es":""}},{"id":"D","text":{"fr":"","en":"The price, within the bid-ask spread, that is most representative of fair value in the circumstances.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000128","standard_id":"IFRS13","concept_ids":["IFRS13.INPUTS.BID_ASK"],"dimension":"CALCULATION","context":"V1_QST.IFRS13.000128","tested_point":"QST.IFRS13.000128","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000010","section_id":"rule-bidask"},"references":["IFRS 13 §70","IFRS 13 §71"],"exercise":{"prompt":{"fr":"","en":"A share is quoted by dealers with an ask price of {ask_price} and a bid price of {bid_price}. Compute the bid-ask spread per share, then the mid-market price the entity would use if it applies that market convention (permitted by the standard, not required).","es":""},"explanation":{"fr":"","en":"Approach: the spread is the difference between the ask price and the bid price; the mid-market price is their average. Calculation: 52.40 − 51.80 = 0.60; (51.80 + 52.40) / 2 = 52.10. Trap: seeing the mid-market price as an obligation, whereas the price used is the one within the spread that is most representative of fair value (IFRS 13, para. 70). Case convention: the entity chooses mid-market. Rule to remember: the use of mid-market pricing is permitted but not required (para. 71).","es":""},"common_error":{"fr":"","en":"Making the mid-market price a mandatory rule for all measurements.","es":""},"format":"CALCULATION","placeholders":[{"id":"ask_price","value":"52.40","unit":"EUR"},{"id":"bid_price","value":"51.80","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Ask price","es":""},"value":"52.40","unit":"EUR"},{"label":{"fr":"","en":"Bid price","es":""},"value":"51.80","unit":"EUR"}],"steps":[{"id":"SPREAD","label":{"fr":"","en":"Bid-ask spread","es":""},"answer":0.6,"tolerance":0,"unit":"EUR"},{"id":"MID_PRICE","label":{"fr":"","en":"Mid-market price","es":""},"answer":52.1,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"SPREAD","meaning":{"fr":"","en":"Bid-ask spread","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Ask price","es":""},"value":52.4,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Bid price","es":""},"value":51.8,"unit":"EUR"}],"result":0.6,"unit":"EUR"},{"step":"MID_PRICE","meaning":{"fr":"","en":"Mid-market price","es":""},"expression":"(a + b) / 2","variables":[{"symbol":"a","meaning":{"fr":"","en":"Bid price","es":""},"value":51.8,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Ask price","es":""},"value":52.4,"unit":"EUR"}],"result":52.1,"unit":"EUR"}],"rationale":{"fr":"","en":"the use of mid-market pricing is permitted but not required (para. 71).","es":""},"references":["REF.IFRS13.70"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000129","standard_id":"IFRS13","concept_ids":["IFRS13.INPUTS.BID_ASK"],"dimension":"ANALYSIS","context":"V1_QST.IFRS13.000129","tested_point":"QST.IFRS13.000129","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000010","section_id":"rule-bidask"},"references":["IFRS 13 §70","IFRS 13 §71"],"exercise":{"prompt":{"fr":"","en":"A valuer comments on their treatment of a quoted instrument with a bid price and an ask price. Which of their statements is wrong?","es":""},"explanation":{"fr":"","en":"The price used within the bid-ask spread is the one most representative of fair value in the circumstances (IFRS 13, para. 70); the use of mid-market pricing or other market conventions is permitted but not required (para. 71). Requiring mid-market for all measurements is therefore an error.","es":""},"common_error":{"fr":"","en":"Imposing the mid-market price for all measurements.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The price used within the spread is the one most representative of fair value in the circumstances.","es":""},"correct":false,"feedback":{"fr":"","en":"This statement is correct: when a bid price and an ask price exist, the price used within the spread is the one most representative of fair value in the circumstances (IFRS 13, para. 70). The error is in the statement that makes mid-market mandatory. Rule to remember: representativeness guides the choice of price (para. 70).","es":""}},{"id":"B","text":{"fr":"","en":"The mid-market price may be used, the standard permitting mid-market pricing or other market conventions.","es":""},"correct":false,"feedback":{"fr":"","en":"This statement is correct: the use of mid-market pricing or other market conventions is permitted (IFRS 13, para. 71). The error lies in the idea that this permission would be an obligation. Rule to remember: mid-market is a possibility, not a general rule (para. 71).","es":""}},{"id":"C","text":{"fr":"","en":"The standard requires the mid-market price for all measurements, which removes the need for judgement.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A market convention may guide the choice of price within the spread, without the standard requiring it.","es":""},"correct":false,"feedback":{"fr":"","en":"This statement is correct: a market convention is permitted but not required (IFRS 13, para. 71). The error lies in the statement that turns the permission into an obligation. Rule to remember: market conventions are permitted, not presented as required by the standard (para. 71).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000130","standard_id":"IFRS13","concept_ids":["IFRS13.HIERARCHY.LOWEST_LEVEL_INPUT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000130","tested_point":"QST.IFRS13.000130","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000011","section_id":"rule-lowest"},"references":["IFRS 13 §72","IFRS 13 §73"],"exercise":{"prompt":{"fr":"","en":"A fair value measurement rests on several inputs falling in different levels of the hierarchy. How is the measurement classified?","es":""},"explanation":{"fr":"","en":"The fair value hierarchy ranks inputs in three levels, by decreasing priority (IFRS 13, para. 72). The measurement is classified in its entirety at the level of the lowest-level input that is significant to it (para. 73).","es":""},"common_error":{"fr":"","en":"Classifying the measurement by the input of greatest value rather than the lowest significant one.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"At the level of the highest-level input, because it is the most reliable input of the measurement.","es":""},"correct":false,"feedback":{"fr":"","en":"Taking the highest level ignores a less reliable input that matters to the measurement. The measurement is classified in its entirety at the level of the lowest-level input that is significant to it (IFRS 13, para. 73). Rule to remember: classification follows the lowest significant input, not the most reliable one (para. 73).","es":""}},{"id":"B","text":{"fr":"","en":"At the level of the input that weighs most in value in the result of the measurement.","es":""},"correct":false,"feedback":{"fr":"","en":"Weight in value is not the criterion: the measurement is classified at the level of the lowest-level input that is significant to it (IFRS 13, para. 73). A Level 3 input can be significant without being the heaviest. Rule to remember: significance, not amount, decides (para. 73).","es":""}},{"id":"C","text":{"fr":"","en":"At an average level, computed by weighting the level of each input by the number of inputs used.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard provides for no average level: the levels are categories of inputs, and the measurement is classified in its entirety at the level of the lowest input that is significant (IFRS 13, paras. 72 and 73). An average makes no sense on categories. Rule to remember: a single level is retained for the measurement (para. 73).","es":""}},{"id":"D","text":{"fr":"","en":"In its entirety, at the level of the lowest-level input that is significant to it.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000132","standard_id":"IFRS13","concept_ids":["IFRS13.HIERARCHY.LOWEST_LEVEL_INPUT"],"dimension":"ANALYSIS","context":"V1_QST.IFRS13.000132","tested_point":"QST.IFRS13.000132","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000011","section_id":"rule-lowest"},"references":["IFRS 13 §73","IFRS 13 §74"],"exercise":{"prompt":{"fr":"","en":"An instrument is measured from a Level 2 price, which represents most of its value, and a Level 3 volatility that the valuer judges significant to the measurement (case judgement). Which of these analyses of the classification is wrong?","es":""},"explanation":{"fr":"","en":"The measurement is classified in its entirety at the level of the lowest-level input that is significant to it (IFRS 13, para. 73); significance is a matter of judgement. Since the Level 3 volatility is significant in the case, Level 3 applies despite the weight in value of the Level 2 input.","es":""},"common_error":{"fr":"","en":"Classifying the measurement by the input of greatest value rather than the lowest significant one.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The measurement is classified in Level 2, since the Level 2 input represents most of the instrument's value.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Since the volatility is a significant Level 3 input, the measurement is classified in Level 3.","es":""},"correct":false,"feedback":{"fr":"","en":"This analysis is correct: a significant Level 3 input makes the measurement a Level 3 one (IFRS 13, para. 73). The error is elsewhere, in the reasoning that retains Level 2. Rule to remember: a significant Level 3 input leads to Level 3 (para. 73).","es":""}},{"id":"C","text":{"fr":"","en":"The measurement is classified in its entirety at the level of the lowest-level input that is significant to it.","es":""},"correct":false,"feedback":{"fr":"","en":"This analysis is correct: the measurement is classified in its entirety at the level of the lowest-level significant input (IFRS 13, para. 73). The error is in the analysis based on weight in value. Rule to remember: the level follows the lowest significant input (para. 73).","es":""}},{"id":"D","text":{"fr":"","en":"Whether the volatility is significant is a matter of judgement and takes account of factors specific to the instrument.","es":""},"correct":false,"feedback":{"fr":"","en":"This analysis is correct: the assessment of whether an input is significant takes account of factors specific to the asset or liability and is a matter of judgement (IFRS 13, para. 73). The error is in the reasoning by weight in value. Rule to remember: significance is judged, it is not deduced from the amount.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000133","standard_id":"IFRS13","concept_ids":["IFRS13.HIERARCHY.LOWEST_LEVEL_INPUT"],"dimension":"APPLICATION","context":"V1_QST.IFRS13.000133","tested_point":"QST.IFRS13.000133","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000011","section_id":"rule-lowest"},"references":["IFRS 13 §73","IFRS 13 §74"],"exercise":{"prompt":{"fr":"","en":"Tolven measures an instrument with a model using a Level 2 yield curve and an unobservable liquidity adjustment equal to 0.2% of the value. After analysing the factors specific to the instrument, it judges (case judgement) this adjustment not significant to the measurement as a whole. In which level does it classify the measurement?","es":""},"explanation":{"fr":"","en":"The measurement is classified in its entirety at the level of the lowest-level input that is significant to it (IFRS 13, para. 73); significance is a matter of judgement. In the case, the unobservable adjustment is judged not significant: the measurement remains in Level 2. Professional judgement: this conclusion must be supported by the analysis of the factors specific to the instrument.","es":""},"common_error":{"fr":"","en":"Thinking that any unobservable input, even a non-significant one, imposes Level 3.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Level 3, because the presence of an unobservable input, however small, leads to that level.","es":""},"correct":false,"feedback":{"fr":"","en":"The mere presence of an unobservable input is not enough: the measurement is classified at the level of the lowest input that is significant to it (IFRS 13, para. 73). Here, the Level 3 input was judged not significant. Rule to remember: a non-significant lower-level input does not change the classification (para. 73).","es":""}},{"id":"B","text":{"fr":"","en":"Level 2, the Level 3 input not being significant to the measurement as a whole.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Level 1, because the unobservable adjustment is below one per cent of the value.","es":""},"correct":false,"feedback":{"fr":"","en":"A small percentage does not turn the measurement into Level 1: the yield curve remains a Level 2 input, which is not an unadjusted quoted price for an identical item (IFRS 13, paras. 72 and 73). Rule to remember: Level 1 rests on quoted prices, not on the smallness of an adjustment (para. 72).","es":""}},{"id":"D","text":{"fr":"","en":"Level 3, because the liquidity adjustment is the last input introduced into the model.","es":""},"correct":false,"feedback":{"fr":"","en":"The order in which an input is added to the model plays no part in classification: what matters is the level of the lowest input that is significant to the measurement (IFRS 13, para. 73). Rule to remember: classification depends on the significance of the input, not on its rank in the model (para. 73).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000134","standard_id":"IFRS13","concept_ids":["IFRS13.HIERARCHY.LEVEL_1"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000134","tested_point":"QST.IFRS13.000134","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":35,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000011","section_id":"rule-levels"},"references":["IFRS 13 §76"],"exercise":{"prompt":{"fr":"","en":"An unadjusted quoted price, in an active market, for an identical asset to which the entity has access at the measurement date is a Level 1 input.","es":""},"explanation":{"fr":"","en":"True. An unadjusted quoted price in an active market for identical assets or liabilities to which the entity has access at the measurement date is a Level 1 input (IFRS 13, para. 76). Approach: check the four conditions (unadjusted quoted price, active market, identical item, access at the measurement date). Trap: forgetting one of them, for example the identity of the item. Rule to remember: Level 1 combines an unadjusted quoted price, an active market, an identical item and access at the measurement date (para. 76).","es":""},"common_error":{"fr":"","en":"Forgetting that Level 1 requires an identical item and access at the measurement date.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000135","standard_id":"IFRS13","concept_ids":["IFRS13.HIERARCHY.LEVEL_1"],"dimension":"RULE_KNOWLEDGE","context":"V1_VG.IFRS13.000103","tested_point":"VG.IFRS13.000103","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":35,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000011","section_id":"rule-levels"},"references":["IFRS 13 §76","IFRS 13 §77"],"exercise":{"prompt":{"fr":"","en":"Which of these inputs is a Level 1 input for the measurement of a share in Verdane, which the entity holds?","es":""},"explanation":{"fr":"","en":"Level 1 consists of unadjusted quoted prices in active markets, for identical assets or liabilities to which the entity has access at the measurement date (IFRS 13, para. 76). The price of an item that is merely comparable, an internal estimate or a price from a thin market does not meet these conditions.","es":""},"common_error":{"fr":"","en":"Classifying in Level 1 the quoted price of an item that is only similar.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"An estimate of the Verdane share price prepared internally using a future cash flow model.","es":""},"correct":false,"feedback":{"fr":"","en":"An internal estimate from a model is not a quoted price: Level 1 rests on unadjusted quoted prices in an active market (IFRS 13, para. 76). Rule to remember: an observed quoted price comes before any internal estimate (paras. 76 and 77).","es":""}},{"id":"B","text":{"fr":"","en":"The closing price of a share of a comparable company in the same sector, traded in an active market.","es":""},"correct":false,"feedback":{"fr":"","en":"The price of a comparable company concerns a similar item, not an identical one: it is not a Level 1 input (IFRS 13, para. 76). It belongs to another level, because Level 1 requires an identical item. Rule to remember: Level 1 = quoted price for an identical item (para. 76).","es":""}},{"id":"C","text":{"fr":"","en":"The unadjusted closing price of the Verdane share in an active market accessible to the entity.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The latest Verdane share price, observed in a market where it trades only very rarely.","es":""},"correct":false,"feedback":{"fr":"","en":"A market in which the share trades only very rarely is not an active market: Level 1 assumes a quoted price in an active market (IFRS 13, para. 76). Rule to remember: without an active market, no Level 1 (para. 76).","es":""}}]},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IFRS13.000136","standard_id":"IFRS13","concept_ids":["IFRS13.HIERARCHY.LEVEL_1"],"dimension":"RULE_KNOWLEDGE","context":"V1_VG.IFRS13.000103","tested_point":"VG.IFRS13.000103","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":55,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000011","section_id":"rule-levels"},"references":["IFRS 13 §76","IFRS 13 §77"],"exercise":{"prompt":{"fr":"","en":"A fund holds bonds issued by Castelle, traded daily in an active market accessible to the fund. Which of these inputs is Level 1 for measuring those bonds?","es":""},"explanation":{"fr":"","en":"Level 1 rests on the unadjusted quoted price of the item itself in an active market to which the entity has access at the measurement date (IFRS 13, para. 76); such a price is used without adjustment whenever it is available (para. 77). The price of another issuer or a modelled value does not meet these conditions.","es":""},"common_error":{"fr":"","en":"Classifying in Level 1 the quoted price of an item that is only similar.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The price of a bond from another issuer, with the same rating and maturity, in an active market.","es":""},"correct":false,"feedback":{"fr":"","en":"A bond from another issuer is a similar item, not an identical one: its price is not Level 1 (IFRS 13, para. 76). Even with the same rating and maturity, the identity of the item is lacking. Rule to remember: Level 1 refers to the quoted price of the item itself (paras. 76 and 78).","es":""}},{"id":"B","text":{"fr":"","en":"The average sector yield, computed by the fund from the prices of several issuers.","es":""},"correct":false,"feedback":{"fr":"","en":"An average sector yield is an input derived from several prices: it is not the unadjusted quoted price of an identical item (IFRS 13, para. 76). Rule to remember: an input computed from other prices is not a Level 1 quoted price (para. 76).","es":""}},{"id":"C","text":{"fr":"","en":"The unadjusted quoted price of the Castelle bond held, at the measurement date.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"A value estimated by the fund from its own yield curve, to avoid quotation differences.","es":""},"correct":false,"feedback":{"fr":"","en":"A value from the fund's own yield curve is an internal estimate: an unadjusted quoted price is used whenever it is available (IFRS 13, para. 77). Setting the price aside to avoid quotation differences is not a ground provided for. Rule to remember: the available quoted price takes precedence over the model (para. 77).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000137","standard_id":"IFRS13","concept_ids":["IFRS13.HIERARCHY.LEVEL_1","IFRS13.HIERARCHY.LEVEL_2"],"dimension":"ANALYSIS","context":"V1_QST.IFRS13.000137","tested_point":"QST.IFRS13.000137","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":55,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000011","section_id":"rule-levels"},"references":["IFRS 13 §76","IFRS 13 §82"],"exercise":{"prompt":{"fr":"","en":"An analyst classifies in Level 1 the measurement of a Prelane bond, on the grounds that it uses the quoted price, in an active market, of another Prelane bond from the same issuer but with a different maturity. What is the error?","es":""},"explanation":{"fr":"","en":"Level 1 requires an unadjusted quoted price, in an active market, for an identical item to which the entity has access (IFRS 13, para. 76). The quoted price of a similar item, such as a bond from the same issuer with a different maturity, is an example of a Level 2 input (para. 82).","es":""},"common_error":{"fr":"","en":"Classifying in Level 1 the quoted price of an item that is only similar.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The price must first be adjusted for the quantity held in order to be Level 1.","es":""},"correct":false,"feedback":{"fr":"","en":"Adjusting the price for the quantity held is precisely what Level 1 rules out: it rests on an unadjusted quoted price (IFRS 13, para. 76). The flaw is elsewhere: the quoted item is not identical. Rule to remember: Level 1 uses the quoted price without adjustment for an identical item (para. 76).","es":""}},{"id":"B","text":{"fr":"","en":"A similar item, not an identical one: its price falls in Level 2.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"Level 1 assumes an over-the-counter market, not an active market.","es":""},"correct":false,"feedback":{"fr":"","en":"Level 1 rests on an active market, not on over-the-counter trading (IFRS 13, para. 76). This is therefore not the analyst's error. The error concerns the identity of the quoted item. Rule to remember: an active market and an identical item are two conditions of Level 1 (para. 76).","es":""}},{"id":"D","text":{"fr":"","en":"A price quoted in an active market can never be used to classify a measurement.","es":""},"correct":false,"feedback":{"fr":"","en":"A price quoted in an active market is on the contrary Level 1 when it concerns an identical item accessible at the measurement date (IFRS 13, para. 76). The problem here is the different maturity, hence the absence of identity. Rule to remember: a quoted price is Level 1 for an identical item, Level 2 for a similar one (paras. 76 and 82).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000138","standard_id":"IFRS13","concept_ids":["IFRS13.HIERARCHY.BLOCKAGE_FACTOR"],"dimension":"ANALYSIS","context":"V1_QST.IFRS13.000138","tested_point":"QST.IFRS13.000138","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":105,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000011","section_id":"rule-level1"},"references":["IFRS 13 §80","IFRS 13 §79"],"exercise":{"prompt":{"fr":"","en":"Tarvel holds 500,000 shares of a company listed in an active market, whereas the average daily trading volume is 40,000 shares. A controller examines four proposed treatments. Which one is wrong?","es":""},"explanation":{"fr":"","en":"The position of an entity in a single asset quoted in an active market is measured at the quoted price multiplied by the quantity held, even if the normal market volume could not absorb the quantity (IFRS 13, para. 80). A discount for selling the 500,000 shares is therefore contrary to the rule. The Level 1 quoted price is otherwise used without adjustment, except in the exceptions set out in the standard (para. 79).","es":""},"common_error":{"fr":"","en":"Reducing the quoted price to reflect the volume of the position held.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Applying to the quoted price a discount to reflect the time needed to sell the 500,000 shares.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Not applying a blockage discount, even if the market could not absorb the quantity in one session.","es":""},"correct":false,"feedback":{"fr":"","en":"This treatment is correct: the value remains price × quantity even if the market's normal volume could not absorb the quantity (IFRS 13, para. 80). The anomaly lies in the proposed discount. Rule to remember: market volume does not justify a blockage discount (para. 80).","es":""}},{"id":"C","text":{"fr":"","en":"Measuring the position at the quoted price multiplied by the quantity held.","es":""},"correct":false,"feedback":{"fr":"","en":"This treatment is correct: the position in a single asset quoted in an active market is measured at the quoted price multiplied by the quantity held (IFRS 13, para. 80). The error is in the treatment that reduces the price for volume. Rule to remember: quoted price × quantity held (para. 80).","es":""}},{"id":"D","text":{"fr":"","en":"Classifying the measurement in Level 1 as long as the quoted price is not adjusted.","es":""},"correct":false,"feedback":{"fr":"","en":"This treatment is consistent: a Level 1 price is not adjusted, and adjustments are limited to the exceptions set out in the standard (IFRS 13, para. 79). Rule to remember: the Level 1 quoted price is used without adjustment, except in the exceptions (para. 79).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000139","standard_id":"IFRS13","concept_ids":["IFRS13.HIERARCHY.BLOCKAGE_FACTOR"],"dimension":"APPLICATION","context":"V1_QST.IFRS13.000139","tested_point":"QST.IFRS13.000139","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":105,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000011","section_id":"rule-level1"},"references":["IFRS 13 §80"],"exercise":{"prompt":{"fr":"","en":"A company holds 120,000 shares of an issuer listed in an active market. The closing price is 18.50 per share and the average daily trading volume is 15,000 shares. What is the fair value of the position?","es":""},"explanation":{"fr":"","en":"Approach: the position in a single asset quoted in an active market is measured at the quoted price multiplied by the quantity held, even if the normal market volume could not absorb it (IFRS 13, para. 80). Calculation: 120,000 × 18.50 = 2,220,000. Trap: deducting a blockage discount, or retaining only one session's volume (15,000 × 18.50 = 277,500). Rule to remember: quoted price × quantity held (para. 80).","es":""},"common_error":{"fr":"","en":"Reducing the quoted price to reflect the volume of the position held.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"2,109,000, after a 5% blockage discount to reflect the size of the position.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer applies a 5% blockage discount (2,220,000 × 95%). Yet the position is measured at the quoted price multiplied by the quantity held, even if the normal volume could not absorb it (IFRS 13, para. 80). Rule to remember: no blockage discount on a quoted price (para. 80).","es":""}},{"id":"B","text":{"fr":"","en":"277,500, corresponding to the quantity the market absorbs in one session.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer values only the quantity traded in one session (15,000 × 18.50). The position held is 120,000 shares: it is measured at the quoted price multiplied by the whole quantity held (IFRS 13, para. 80). Rule to remember: one measures the position held, not the market volume (para. 80).","es":""}},{"id":"C","text":{"fr":"","en":"2,331,000, after a 5% premium for holding a large block.","es":""},"correct":false,"feedback":{"fr":"","en":"This answer adds a 5% premium (2,220,000 × 105%). A premium linked to the size of the position is no more allowed than a discount: the quoted price is multiplied by the quantity held (IFRS 13, para. 80). Rule to remember: neither a size premium nor a size discount on a quoted price (para. 80).","es":""}},{"id":"D","text":{"fr":"","en":"2,220,000, that is the quoted price multiplied by the quantity held.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000140","standard_id":"IFRS13","concept_ids":["IFRS13.HIERARCHY.LEVEL_2"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000140","tested_point":"QST.IFRS13.000140","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":55,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000011","section_id":"rule-levels"},"references":["IFRS 13 §81","IFRS 13 §82"],"exercise":{"prompt":{"fr":"","en":"Which of these inputs falls in Level 2 of the fair value hierarchy?","es":""},"explanation":{"fr":"","en":"Level 2 comprises inputs other than the Level 1 quoted prices that are observable, directly or indirectly, for the asset or liability (IFRS 13, para. 81): quoted prices of similar items, prices in inactive markets, observable interest rates, volatilities and credit spreads (para. 82).","es":""},"common_error":{"fr":"","en":"Confusing an observable Level 2 input with a Level 1 quoted price.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The unadjusted quoted price of an identical asset in an active market to which the entity has access.","es":""},"correct":false,"feedback":{"fr":"","en":"An unadjusted quoted price of an identical asset in an active market is a Level 1 input, not Level 2 (IFRS 13, para. 76). Level 2 covers observable inputs other than those quoted prices (para. 81). Rule to remember: unadjusted quoted price of an identical item = Level 1 (para. 76).","es":""}},{"id":"B","text":{"fr":"","en":"An interest rate observable in the market for the term of the item being measured.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"A cash flow assumption set internally, with no reference to market data.","es":""},"correct":false,"feedback":{"fr":"","en":"A cash flow assumption set internally, with no reference to the market, is not observable: it falls in Level 3 (IFRS 13, para. 86). Level 2 assumes inputs that are observable, directly or indirectly (para. 81). Rule to remember: observability separates Level 2 from Level 3 (para. 81).","es":""}},{"id":"D","text":{"fr":"","en":"A risk margin estimated by management from its own expectations.","es":""},"correct":false,"feedback":{"fr":"","en":"A margin based on management's own expectations is unobservable: it falls in Level 3 (IFRS 13, para. 86). Level 2 requires an input observable for the item. Rule to remember: an internal estimate with no market support is not Level 2 (para. 81).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000144","standard_id":"IFRS13","concept_ids":["IFRS13.HIERARCHY.LEVEL_3"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000144","tested_point":"QST.IFRS13.000144","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000011","section_id":"rule-levels"},"references":["IFRS 13 §89","IFRS 13 §90"],"exercise":{"prompt":{"fr":"","en":"An entity has to develop an unobservable Level 3 input to measure an instrument. How does it proceed?","es":""},"explanation":{"fr":"","en":"The entity develops unobservable inputs from the best information available, including its own data adjusted if they differ from those of market participants (IFRS 13, para. 89). It need not undertake exhaustive efforts but cannot ignore reasonably available information.","es":""},"common_error":{"fr":"","en":"Using only its own internal data without looking for reasonably available market information.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It starts from the best information available and adjusts its data to those of participants.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"It carries out an exhaustive search of the assumptions of every market participant before concluding.","es":""},"correct":false,"feedback":{"fr":"","en":"The entity need not undertake exhaustive efforts to obtain information about market participant assumptions, but it cannot ignore information that is reasonably available (IFRS 13, para. 89). Rule to remember: no exhaustive search, and no ignoring reasonably available information.","es":""}},{"id":"C","text":{"fr":"","en":"It takes the Level 2 inputs as they are, removing the adjustment that makes them unobservable.","es":""},"correct":false,"feedback":{"fr":"","en":"Taking the Level 2 inputs and removing their adjustment does not develop a Level 3 input: it is built from the best information available (IFRS 13, para. 89). Rule to remember: a Level 3 input is developed, not deduced from a mere removal of an adjustment (para. 89).","es":""}},{"id":"D","text":{"fr":"","en":"It uses only its own data, without adjusting them, since it knows them best.","es":""},"correct":false,"feedback":{"fr":"","en":"The entity's own data are a starting point, but they are adjusted if they differ from what market participants would use (IFRS 13, para. 89). Using them unadjusted ignores that requirement. Rule to remember: internal data are adjusted when they differ from market participants' assumptions (para. 89).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000146","standard_id":"IFRS13","concept_ids":["IFRS13.HIERARCHY.LEVEL_3"],"dimension":"ANALYSIS","context":"V1_QST.IFRS13.000146","tested_point":"QST.IFRS13.000146","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000011","section_id":"rule-levels"},"references":["IFRS 13 §89","IFRS 13 §90"],"exercise":{"prompt":{"fr":"","en":"For an unlisted debt, Wendrel sets the risk premium of its discount rate from its own internal data only, without consulting the reasonably available market information, which indicates that market participants would require a different premium. What is the error?","es":""},"explanation":{"fr":"","en":"Level 3 inputs are developed from the best information available; the entity's own data are adjusted if they differ from those of market participants (IFRS 13, para. 89), and reasonably available information cannot be ignored. Setting the premium from internal data alone does not follow this approach.","es":""},"common_error":{"fr":"","en":"Using only its own internal data without looking for reasonably available market information.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It should have carried out an exhaustive search of all the assumptions of all participants.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard does not call for an exhaustive search: the entity need not undertake exhaustive efforts on participants' assumptions, but cannot ignore reasonably available information (IFRS 13, para. 89). The flaw is ignoring that information. Rule to remember: a reasonable effort, not an exhaustive one.","es":""}},{"id":"B","text":{"fr":"","en":"It should have classified the debt in Level 1, since it uses a discount rate.","es":""},"correct":false,"feedback":{"fr":"","en":"Using a discount rate does not give Level 1: Level 1 rests on quoted prices. The level depends on the nature of the inputs, here an unobservable risk premium (IFRS 13, para. 86). Rule to remember: the nature of the inputs determines the level, not the type of technique (para. 86).","es":""}},{"id":"C","text":{"fr":"","en":"It ignores reasonably available information and does not adjust its data.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It need not adjust its data, because the Level 3 input reflects its own assumptions.","es":""},"correct":false,"feedback":{"fr":"","en":"On the contrary, Level 3 inputs reflect the assumptions of market participants, and the entity adjusts its own data if they differ from those of participants (IFRS 13, paras. 88 and 89). Rule to remember: Level 3 adjusts to the participants' assumptions (para. 89).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000148","standard_id":"IFRS13","concept_ids":["IFRS13.HIERARCHY.TRANSFERS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000148","tested_point":"QST.IFRS13.000148","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000011","section_id":"rule-level23"},"references":["IFRS 13 §95"],"exercise":{"prompt":{"fr":"","en":"A Level 2 instrument becomes Level 1 during the year. What must the entity disclose about the timing of such transfers between levels?","es":""},"explanation":{"fr":"","en":"The entity discloses its policy for determining when transfers between levels of the hierarchy occur and applies it consistently (IFRS 13, para. 95). It is neither silent on the subject nor free to change the timing according to the effect sought.","es":""},"common_error":{"fr":"","en":"Omitting to describe the policy on the timing of transfers.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Its policy for determining when transfers occur, which it applies consistently.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Nothing, because a transfer between levels is an internal operation with no effect on published information.","es":""},"correct":false,"feedback":{"fr":"","en":"A transfer between levels is not an internal operation without effect: the entity discloses its policy for determining when transfers occur (IFRS 13, para. 95). Saying nothing omits that information. Effect: users could not compare transfers from one period to another. Rule to remember: the policy on the timing of transfers is disclosed (para. 95).","es":""}},{"id":"C","text":{"fr":"","en":"A different timing each year, chosen according to the effect on the period's profit or loss.","es":""},"correct":false,"feedback":{"fr":"","en":"Changing the timing each year according to the effect on profit or loss contradicts the requirement to apply the policy consistently (IFRS 13, para. 95). The policy must be disclosed and applied consistently. Rule to remember: consistent application of the timing policy (para. 95).","es":""}},{"id":"D","text":{"fr":"","en":"The annual reporting date, which the standard imposes for all transfers.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard does not set a reporting date for all transfers: it is for the entity to disclose its own timing policy and apply it consistently (IFRS 13, para. 95). Rule to remember: the policy is the entity's own, disclosed in the notes (para. 95).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000149","standard_id":"IFRS13","concept_ids":["IFRS13.HIERARCHY.TRANSFERS"],"dimension":"ANALYSIS","context":"V1_QST.IFRS13.000149","tested_point":"QST.IFRS13.000149","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000011","section_id":"rule-level23"},"references":["IFRS 13 §95"],"exercise":{"prompt":{"fr":"","en":"A controller reviews a group's notes on the fair value hierarchy. Which practice is contrary to the standard?","es":""},"explanation":{"fr":"","en":"The entity discloses and consistently applies its policy for determining when transfers between levels of the hierarchy occur (IFRS 13, para. 95). Transfers presented without that policy leave users unable to assess or compare these movements.","es":""},"common_error":{"fr":"","en":"Omitting to describe the policy on the timing of transfers.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Describing the entity's policy for determining when transfers between levels occur.","es":""},"correct":false,"feedback":{"fr":"","en":"This practice is consistent: the entity discloses its policy for determining when transfers between levels occur (IFRS 13, para. 95). The error is in the practice that presents transfers without that policy. Rule to remember: the timing policy is described (para. 95).","es":""}},{"id":"B","text":{"fr":"","en":"Applying that policy in the same way from one year to the next.","es":""},"correct":false,"feedback":{"fr":"","en":"This practice is consistent: the policy is applied consistently (IFRS 13, para. 95). The error is elsewhere, in the lack of a description of the policy. Rule to remember: consistent application from one year to the next (para. 95).","es":""}},{"id":"C","text":{"fr":"","en":"Publishing the policy on the timing of transfers together with the information on fair value measurements.","es":""},"correct":false,"feedback":{"fr":"","en":"This practice is consistent: the policy on the timing of transfers is part of the disclosures about fair value measurements (IFRS 13, para. 95). The anomaly lies in the practice that omits it. Rule to remember: the policy is published with the information on the hierarchy (para. 95).","es":""}},{"id":"D","text":{"fr":"","en":"Presenting transfers between levels without stating the policy that determines their timing.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000153","standard_id":"IFRS13","concept_ids":["IFRS13.INACTIVE.NOT_ORDERLY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000153","tested_point":"QST.IFRS13.000153","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":105,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000012","section_id":"rule-orderly"},"references":["IFRS 13 §B43","IFRS 13 §B44"],"exercise":{"prompt":{"fr":"","en":"An entity notes that a recent transaction in an instrument was concluded at a price well below that of the other transactions. How does it treat this information in its measurement?","es":""},"explanation":{"fr":"","en":"Indications make it possible to identify a transaction that is not orderly; the entity then determines the weight to give to its price in the measurement (IFRS 13, paras. B43 and B44). Neither automatic use of a recent price nor its automatic rejection is the expected approach.","es":""},"common_error":{"fr":"","en":"Setting aside every transaction price from a less active market, or using it without examination.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It automatically uses that price, since it is the most recent transaction.","es":""},"correct":false,"feedback":{"fr":"","en":"Using the price because it is the most recent ignores the question of whether the transaction is orderly. Indications make it possible to identify a transaction that is not orderly, and the weight of its price is assessed accordingly (IFRS 13, paras. B43 and B44). Rule to remember: recency is not enough, the orderly nature of the transaction is assessed (para. B43).","es":""}},{"id":"B","text":{"fr":"","en":"It automatically sets it aside, since it differs from the other observed prices.","es":""},"correct":false,"feedback":{"fr":"","en":"Automatically setting a price aside because it differs from the others is a mechanical rule that the standard does not adopt: one looks for indications of a non-orderly transaction, then determines the weight of the price (IFRS 13, paras. B43 and B44). Rule to remember: a price difference is not, in itself, a sufficient indication (para. B43).","es":""}},{"id":"C","text":{"fr":"","en":"It ignores it, because an isolated transaction can never be taken into account.","es":""},"correct":false,"feedback":{"fr":"","en":"An isolated transaction is not set aside on principle: the entity assesses whether it is orderly, then the weight to give to its price (IFRS 13, paras. B43 and B44). Rule to remember: the assessment concerns the orderly nature of the transaction, not its isolation (para. B43).","es":""}},{"id":"D","text":{"fr":"","en":"It assesses whether the transaction is orderly, then weights its price.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000154","standard_id":"IFRS13","concept_ids":["IFRS13.INACTIVE.NOT_ORDERLY"],"dimension":"ANALYSIS","context":"V1_QST.IFRS13.000154","tested_point":"QST.IFRS13.000154","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":105,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000012","section_id":"rule-orderly"},"references":["IFRS 13 §B43","IFRS 13 §B44"],"exercise":{"prompt":{"fr":"","en":"A valuer justifies their treatment of prices in a market where activity has decreased. Which of their statements is wrong?","es":""},"explanation":{"fr":"","en":"Indications make it possible to identify a non-orderly transaction, and the weight given to its price is determined accordingly (IFRS 13, paras. B43 and B44). Setting aside all prices of a less active market outright, without analysing each transaction, is a mechanical rule that the standard does not adopt.","es":""},"common_error":{"fr":"","en":"Setting aside every transaction price from a less active market.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Indications make it possible to identify a transaction that is not orderly.","es":""},"correct":false,"feedback":{"fr":"","en":"This statement is correct: indications make it possible to identify a non-orderly transaction (IFRS 13, para. B43). The error is in the statement that sets aside all prices of a less active market. Rule to remember: identification rests on indications, transaction by transaction (para. B43).","es":""}},{"id":"B","text":{"fr":"","en":"All prices in a less active market are set aside automatically, since that market is less active.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The weight of the price of a non-orderly transaction is determined by the valuer.","es":""},"correct":false,"feedback":{"fr":"","en":"This statement is correct: the standard provides for a weight to be given to the prices of the non-orderly transaction (IFRS 13, paras. B43 and B44). The error is elsewhere. Rule to remember: the weight of the price is determined, not presumed (para. B43).","es":""}},{"id":"D","text":{"fr":"","en":"A transaction is analysed before its price is taken into account in the measurement.","es":""},"correct":false,"feedback":{"fr":"","en":"This statement is correct: the entity analyses the transaction (indications of its orderly nature) before deciding on the weight of its price (IFRS 13, paras. B43 and B44). The error is elsewhere. Rule to remember: analyse the transaction first, weight afterwards (paras. B43 and B44).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000156","standard_id":"IFRS13","concept_ids":["IFRS13.DISCLOSURE.OBJECTIVES"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000156","tested_point":"QST.IFRS13.000156","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000013","section_id":"rule-objectives"},"references":["IFRS 13 §91","IFRS 13 §92"],"exercise":{"prompt":{"fr":"","en":"What are the objectives of the disclosures about fair value measurements?","es":""},"explanation":{"fr":"","en":"The disclosure objectives are to enable users to assess the techniques and inputs used for recurring and non-recurring measurements, and the effect of recurring Level 3 measurements on profit or loss or other comprehensive income (IFRS 13, para. 91). The entity adjusts the level of detail to meet them (para. 92).","es":""},"common_error":{"fr":"","en":"Limiting disclosure to a table of amounts without reporting on techniques and inputs.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"To reconstruct the price history of each instrument over several years, for market analysis purposes.","es":""},"correct":false,"feedback":{"fr":"","en":"A price history is not the objective: the disclosures must enable users to assess the techniques and inputs used for the measurements, and the effect of recurring Level 3 measurements on profit or loss or other comprehensive income (IFRS 13, para. 91). Rule to remember: the objective is to shed light on techniques, inputs and their effects (para. 91).","es":""}},{"id":"B","text":{"fr":"","en":"To demonstrate that the fair value of each item equals its acquisition cost.","es":""},"correct":false,"feedback":{"fr":"","en":"Fair value is not demonstrated against acquisition cost: the disclosure objectives concern the techniques and inputs of measurements and the effect of recurring Level 3 measurements (IFRS 13, para. 91). Rule to remember: the disclosure explains how fair value is measured, not how it lines up with cost.","es":""}},{"id":"C","text":{"fr":"","en":"To enable users to assess the techniques and inputs used, and the effect of recurring Level 3 measurements on profit or loss or other comprehensive income.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"To describe recurring measurements only, non-recurring ones belonging to other notes.","es":""},"correct":false,"feedback":{"fr":"","en":"The objectives cover the techniques and inputs of recurring and non-recurring measurements: limiting the information to the former leaves out the latter (IFRS 13, para. 91). Rule to remember: both types of measurement fall within the first objective; the second concerns the effect of recurring Level 3 measurements.","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000157","standard_id":"IFRS13","concept_ids":["IFRS13.DISCLOSURE.OBJECTIVES"],"dimension":"ANALYSIS","context":"V1_QST.IFRS13.000157","tested_point":"QST.IFRS13.000157","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000013","section_id":"rule-objectives"},"references":["IFRS 13 §92","IFRS 13 §91"],"exercise":{"prompt":{"fr":"","en":"To lighten its notes, a group lumps together in a single category 'Financial instruments' instruments that are very different in nature and risk. What does a reviewer say about this practice?","es":""},"explanation":{"fr":"","en":"The entity assesses the level of detail, the emphasis on each requirement, the level of aggregation and the need for additional information to meet the disclosure objectives (IFRS 13, paras. 92 and 91). Lumping very different categories into one obscures risks and impairs users' assessment.","es":""},"common_error":{"fr":"","en":"Aggregating heterogeneous categories to the point of obscuring risks.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is compliant, because the standard requires limiting the notes to a single category for all measurements.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard does not impose a single category: the entity assesses the level of detail, the level of aggregation and the need for additional information to meet the disclosure objectives (IFRS 13, para. 92). Rule to remember: the level of aggregation is judged against the objectives, not a single format (para. 92).","es":""}},{"id":"B","text":{"fr":"","en":"It is compliant, provided the level of detail is the same as in the previous year.","es":""},"correct":false,"feedback":{"fr":"","en":"Repeating last year's level of detail is not enough: the level of detail and aggregation is assessed to meet the disclosure objectives (IFRS 13, paras. 91 and 92). An aggregation that obscures risks does not become acceptable by continuity. Rule to remember: aggregation is justified by the objectives, not by habit (para. 92).","es":""}},{"id":"C","text":{"fr":"","en":"It is open to challenge: heterogeneous categories are not combined to the point of obscuring risks.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It is open to challenge only if the lumped amounts exceed the materiality threshold set by the standard.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard sets no numerical materiality threshold for aggregation: it asks the entity to assess the level of aggregation to meet the objectives (IFRS 13, para. 92). Rule to remember: the assessment concerns whether users can evaluate techniques, inputs and risks (paras. 91 and 92).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000158","standard_id":"IFRS13","concept_ids":["IFRS13.DISCLOSURE.LEVEL_TABLE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000158","tested_point":"QST.IFRS13.000158","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":55,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000013","section_id":"rule-objectives"},"references":["IFRS 13 §94","IFRS 13 §93"],"exercise":{"prompt":{"fr":"","en":"How does the entity present, in its notes, the fair values of its assets and liabilities measured at fair value?","es":""},"explanation":{"fr":"","en":"The entity provides the information by class of assets and liabilities, including the fair value at the end of the period and the level of the hierarchy (IFRS 13, para. 93). Classes are determined on the basis of the nature, characteristics and risks of the item and the level of the hierarchy (IFRS 13).","es":""},"common_error":{"fr":"","en":"Presenting a single total without distinguishing the classes or the levels.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"By financial year, with no distinction of nature, in a single total for all items.","es":""},"correct":false,"feedback":{"fr":"","en":"A single total shows neither the nature, the risks nor the level of each measurement. Classes are determined on the basis of the nature, characteristics and risks of the item and the level of the hierarchy (IFRS 13). Rule to remember: the information is provided by class, not as a single total (para. 93).","es":""}},{"id":"B","text":{"fr":"","en":"By class of assets and liabilities, with period-end fair value and the level.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"By acquisition date, the oldest items being presented first.","es":""},"correct":false,"feedback":{"fr":"","en":"The acquisition date is not a criterion of class: it is determined on the basis of the nature, characteristics and risks of the item and the level of the hierarchy (IFRS 13). Rule to remember: items are classed by nature, risk and level, not by age (IFRS 13).","es":""}},{"id":"D","text":{"fr":"","en":"By price provider, each provider forming a separate category.","es":""},"correct":false,"feedback":{"fr":"","en":"Classes are not defined by price provider: they rest on the nature, characteristics and risks of the item and on the level of the hierarchy (IFRS 13). Rule to remember: the class describes the item measured, not the origin of the price (IFRS 13).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000159","standard_id":"IFRS13","concept_ids":["IFRS13.DISCLOSURE.LEVEL_TABLE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000159","tested_point":"QST.IFRS13.000159","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000013","section_id":"rule-objectives"},"references":["IFRS 13 §93","IFRS 13 §94"],"exercise":{"prompt":{"fr":"","en":"Which of the following items of information does the entity provide by class of assets and liabilities for its fair value measurements?","es":""},"explanation":{"fr":"","en":"By class, the entity provides in particular the fair value at the end of the period, the level of the hierarchy, transfers between Levels 1 and 2, the techniques and inputs of Levels 2 and 3, the reconciliation of Level 3 balances, the effect on profit or loss and the sensitivity to unobservable inputs, these last three items concerning recurring Level 3 measurements (IFRS 13, para. 93).","es":""},"common_error":{"fr":"","en":"Confusing information about fair value with information about historical cost.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The historical cost of each item since its acquisition date.","es":""},"correct":false,"feedback":{"fr":"","en":"Historical cost is not information required for fair value measurements: the information by class covers the fair value at the end of the period, the level of the hierarchy, transfers, techniques and inputs, etc. (IFRS 13, para. 93). Rule to remember: the information describes fair value and its measurement (para. 93).","es":""}},{"id":"B","text":{"fr":"","en":"The fair value at the end of the period.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The level of the fair value hierarchy in which the measurement is classified.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The named list of price providers consulted for each item.","es":""},"correct":false,"feedback":{"fr":"","en":"The named list of price providers is not among the information concerned: it relates to fair value, level, transfers, techniques and inputs, the Level 3 reconciliation and sensitivity (IFRS 13, para. 93). Rule to remember: techniques and inputs are described, not the identity of providers (para. 93).","es":""}},{"id":"E","text":{"fr":"","en":"Transfers between Levels 1 and 2.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000160","standard_id":"IFRS13","concept_ids":["IFRS13.DISCLOSURE.LEVEL_TABLE"],"dimension":"ANALYSIS","context":"V1_QST.IFRS13.000160","tested_point":"QST.IFRS13.000160","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":55,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000013","section_id":"rule-objectives"},"references":["IFRS 13 §94","IFRS 13 §93"],"exercise":{"prompt":{"fr":"","en":"A group's fair value table shows on a single line 'Financial instruments' both Level 1 and Level 3 instruments, without distinguishing the levels. What is the error?","es":""},"explanation":{"fr":"","en":"Classes of assets and liabilities are determined on the basis of the nature, characteristics and risks of the item and the level of the hierarchy (IFRS 13); the fair value at the end of the period and the level are provided by class (para. 93). Combining Level 1 and Level 3 on one line without distinguishing them deprives users of information on the reliability of the measurements.","es":""},"common_error":{"fr":"","en":"Mixing different levels of the hierarchy in one class without distinguishing them.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The table may contain only Level 1 instruments, the other levels being presented separately.","es":""},"correct":false,"feedback":{"fr":"","en":"The table is not reserved for Level 1: the information is provided by class and includes the level of the hierarchy for each measurement (IFRS 13, para. 93). The flaw is the lack of distinction between levels. Rule to remember: all levels appear, but distinguished (para. 93).","es":""}},{"id":"B","text":{"fr":"","en":"The table must be replaced by narrative text, a numerical presentation not being allowed.","es":""},"correct":false,"feedback":{"fr":"","en":"A numerical table is not ruled out: the disclosures are provided by class, with the fair value and the level (IFRS 13, para. 93). The flaw is elsewhere. Rule to remember: a numerical table remains possible; what matters is distinguishing the levels by class (para. 93).","es":""}},{"id":"C","text":{"fr":"","en":"The table must present the fair value at the beginning of the period and not at the end of the period.","es":""},"correct":false,"feedback":{"fr":"","en":"The fair value required is that of the end of the period (IFRS 13, para. 93): the flaw of the table is not the date but the mixing of levels. Rule to remember: the fair value at the end of the period is provided by class, distinguishing the levels (para. 93).","es":""}},{"id":"D","text":{"fr":"","en":"Classes take account of the level: different levels are not combined without distinguishing them.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000161","standard_id":"IFRS13","concept_ids":["IFRS13.DISCLOSURE.LEVEL_TABLE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000161","tested_point":"QST.IFRS13.000161","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":55,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000013","section_id":"rule-objectives"},"references":["IFRS 13 §94","IFRS 13 §93"],"exercise":{"prompt":{"fr":"","en":"On what criteria does the entity determine the classes of assets and liabilities for the fair value disclosures?","es":""},"explanation":{"fr":"","en":"Classes of assets and liabilities are determined on the basis of the nature, characteristics and risks of the item and the level of the hierarchy in which its measurement is classified (IFRS 13); the information is provided by class (IFRS 13, para. 93).","es":""},"common_error":{"fr":"","en":"Defining classes on internal criteria unrelated to nature, risk or level.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The nature, characteristics and risks of the item, and the level of the hierarchy.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The acquisition date alone of each item, to facilitate follow-up over time.","es":""},"correct":false,"feedback":{"fr":"","en":"The acquisition date does not define a class of information: the standard uses the nature, characteristics and risks of the item and the level of the hierarchy (IFRS 13). Rule to remember: classes describe the item and the reliability of its measurement (IFRS 13).","es":""}},{"id":"C","text":{"fr":"","en":"The amount alone of each item, the largest being isolated with no other criterion.","es":""},"correct":false,"feedback":{"fr":"","en":"The amount is not enough to define a class: classes are determined on the basis of the nature, characteristics and risks of the item and the level of the hierarchy (IFRS 13). Isolating large amounts with no other criterion may mix different natures. Rule to remember: the size of an amount is not a criterion of class (IFRS 13).","es":""}},{"id":"D","text":{"fr":"","en":"The choice of the accounting department preparing the notes, according to its own internal organisation.","es":""},"correct":false,"feedback":{"fr":"","en":"The internal organisation of the accounting department does not determine classes: they rest on the nature, characteristics and risks of the item and on the level of the hierarchy (IFRS 13). Rule to remember: the criterion is nature, characteristics, risks and level, not internal convenience (IFRS 13).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000162","standard_id":"IFRS13","concept_ids":["IFRS13.DISCLOSURE.VALUATION_TECHNIQUES_INPUTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000162","tested_point":"QST.IFRS13.000162","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000013","section_id":"rule-content"},"references":["IFRS 13 §93"],"exercise":{"prompt":{"fr":"","en":"For a recurring measurement classified in Level 2 or Level 3, what must the entity describe in its notes about the measurement method?","es":""},"explanation":{"fr":"","en":"Among the information by class are the valuation techniques and the inputs used for Level 2 and Level 3 measurements (IFRS 13, para. 93). The amount alone, a description limited to observable inputs or a list of people do not meet this requirement.","es":""},"common_error":{"fr":"","en":"Omitting the description of the technique for a Level 2 instrument.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The valuation techniques and the inputs used for that measurement.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Only the fair value amount, the method being a matter for internal files.","es":""},"correct":false,"feedback":{"fr":"","en":"The amount alone does not meet the requirement: for Levels 2 and 3, the information covers the techniques and inputs used (IFRS 13, para. 93). A method left to internal files deprives users of the assessment intended. Rule to remember: for Levels 2 and 3, the technique and the inputs are described (para. 93).","es":""}},{"id":"C","text":{"fr":"","en":"Only the observable inputs, the unobservable inputs remaining confidential.","es":""},"correct":false,"feedback":{"fr":"","en":"Unobservable inputs cannot be left out: the information covers the techniques and inputs of Levels 2 and 3, which includes Level 3 inputs, themselves unobservable (IFRS 13, para. 93). Rule to remember: Level 3 inputs are precisely those to be described (para. 93).","es":""}},{"id":"D","text":{"fr":"","en":"The list of staff who carried out the calculation, without mentioning the technique.","es":""},"correct":false,"feedback":{"fr":"","en":"The names of staff are not information about the measurement: the technique and inputs used for Levels 2 and 3 must be described (IFRS 13, para. 93). Rule to remember: the information concerns the technique and its inputs, not people (para. 93).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000163","standard_id":"IFRS13","concept_ids":["IFRS13.DISCLOSURE.VALUATION_TECHNIQUES_INPUTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000163","tested_point":"QST.IFRS13.000163","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000013","section_id":"rule-content"},"references":["IFRS 13 §93"],"exercise":{"prompt":{"fr":"","en":"Which statements about the disclosures on valuation techniques and inputs are consistent with the standard?","es":""},"explanation":{"fr":"","en":"The techniques and inputs of Level 2 and Level 3 measurements are part of the information by class (IFRS 13, para. 93). They are not limited to Level 1 and do not become optional when an external price provider is used.","es":""},"common_error":{"fr":"","en":"Omitting the description of the technique for a Level 2 instrument.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"They concern only Level 1 measurements, the other levels not being described.","es":""},"correct":false,"feedback":{"fr":"","en":"The information on techniques and inputs is aimed precisely at Levels 2 and 3 (IFRS 13, para. 93). Rule to remember: techniques and inputs are described for Levels 2 and 3 (para. 93).","es":""}},{"id":"B","text":{"fr":"","en":"They cover the techniques and inputs of Level 2 measurements.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"They cover the techniques and inputs of Level 3 measurements.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"They are optional once the fair value comes from an external price provider.","es":""},"correct":false,"feedback":{"fr":"","en":"Using an external price provider does not make the information optional: the techniques and inputs of Levels 2 and 3 must be described (IFRS 13, para. 93). Rule to remember: the source of the price does not remove the disclosure (para. 93).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000164","standard_id":"IFRS13","concept_ids":["IFRS13.DISCLOSURE.VALUATION_TECHNIQUES_INPUTS"],"dimension":"ANALYSIS","context":"V1_QST.IFRS13.000164","tested_point":"QST.IFRS13.000164","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000013","section_id":"rule-content"},"references":["IFRS 13 §93"],"exercise":{"prompt":{"fr":"","en":"A group's fair value table shows an interest rate swap classified in Level 2, with its fair value, but the notes describe neither the technique nor the inputs used. What is the error?","es":""},"explanation":{"fr":"","en":"The valuation techniques and the inputs used for Level 2 and Level 3 measurements are part of the information by class (IFRS 13, para. 93). Giving the fair value and the level of a swap without describing its technique or inputs is therefore an omission.","es":""},"common_error":{"fr":"","en":"Omitting the description of the technique for a Level 2 instrument.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The notes should have given the technique only for Level 1 instruments.","es":""},"correct":false,"feedback":{"fr":"","en":"The information on techniques and inputs concerns Levels 2 and 3 (IFRS 13, para. 93). Reversing the scope of the requirement does not correct the omission. Rule to remember: the description of techniques is aimed at Levels 2 and 3 (para. 93).","es":""}},{"id":"B","text":{"fr":"","en":"For a Level 2 measurement, the valuation technique and the inputs used must be described.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The notes need describe only the valuers' recruitment process, not the technique.","es":""},"correct":false,"feedback":{"fr":"","en":"The recruitment of valuers is not the information required: the notes describe the techniques and inputs of Level 2 and Level 3 measurements (IFRS 13, para. 93). Rule to remember: the information concerns the technique and its inputs (para. 93).","es":""}},{"id":"D","text":{"fr":"","en":"The swap should have been classified in Level 1 to avoid any description.","es":""},"correct":false,"feedback":{"fr":"","en":"The level of classification is not chosen to avoid a description: the information on techniques and inputs concerns Level 2 and Level 3 measurements (IFRS 13, para. 93). Rule to remember: the level is not chosen to avoid disclosure (para. 93).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000165","standard_id":"IFRS13","concept_ids":["IFRS13.DISCLOSURE.VALUATION_TECHNIQUES_INPUTS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000165","tested_point":"QST.IFRS13.000165","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000013","section_id":"rule-content"},"references":["IFRS 13 §93"],"exercise":{"prompt":{"fr":"","en":"A fund holds: (1) a share quoted in an active market, measured at its price; (2) a Level 2 interest rate swap; (3) an unlisted Level 3 interest. For which of these items does the entity describe the valuation techniques and the inputs used?","es":""},"explanation":{"fr":"","en":"The valuation techniques and the inputs used are described for Level 2 and Level 3 measurements (IFRS 13, para. 93): here the swap (Level 2) and the unlisted interest (Level 3). The quoted share measured at its price (Level 1) does not call for this description.","es":""},"common_error":{"fr":"","en":"Omitting the description of the technique for a Level 2 instrument, or requiring it for Level 1.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"For the quoted share only, since it is the only one whose fair value is published.","es":""},"correct":false,"feedback":{"fr":"","en":"A quoted share measured at its price is Level 1: the information on techniques and inputs concerns Levels 2 and 3 (IFRS 13, para. 93). Retaining the quoted share alone reverses the logic. Rule to remember: the description is aimed at Levels 2 and 3, not Level 1 (para. 93).","es":""}},{"id":"B","text":{"fr":"","en":"For the quoted share and the Level 2 swap, but not for the unlisted interest.","es":""},"correct":false,"feedback":{"fr":"","en":"The Level 3 interest is precisely concerned by the disclosure: the techniques and inputs of Levels 2 and 3 are described (IFRS 13, para. 93). The Level 1 quoted share is not. Rule to remember: Levels 2 and 3 included, Level 1 excluded (para. 93).","es":""}},{"id":"C","text":{"fr":"","en":"For the Level 2 swap and the unlisted Level 3 interest.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"For the unlisted interest only, since its inputs are not observable.","es":""},"correct":false,"feedback":{"fr":"","en":"Level 2 is also concerned: the information covers the techniques and inputs of Levels 2 and 3, not only those whose inputs are unobservable (IFRS 13, para. 93). Rule to remember: both levels are covered (para. 93).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000166","standard_id":"IFRS13","concept_ids":["IFRS13.DISCLOSURE.LEVEL3_RECONCILIATION"],"dimension":"CALCULATION","context":"V1_VG.IFRS13.000104","tested_point":"VG.IFRS13.000104","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000013","section_id":"rule-level3"},"references":["IFRS 13 §93"],"exercise":{"prompt":{"fr":"","en":"Valdoren's Level 3 instruments, measured on a recurring basis (case data), have an opening balance of {opening_balance}. During the year: gains recognised in profit or loss {gain_in_profit_or_loss}, gains in other comprehensive income {gain_in_oci}, purchases {purchases}, sales {sales} and transfers into Level 3 {transfers_in}. Compute the closing balance of the reconciliation.","es":""},"explanation":{"fr":"","en":"Approach: the reconciliation starts from the opening balance of Level 3 measurements and adds or deducts each movement of the period (IFRS 13, para. 93). Calculation: 640,000 + 45,000 + 18,000 + 120,000 − 75,000 + 30,000 = 778,000. Trap: adding sales instead of deducting them, or leaving out a movement. Rule to remember: the reconciliation of Level 3 balances explains the whole difference between opening and closing (para. 93).","es":""},"common_error":{"fr":"","en":"Leaving a movement (purchases, sales, transfers, profit or loss, other comprehensive income) out of the reconciliation.","es":""},"format":"CALCULATION","placeholders":[{"id":"opening_balance","value":"640000","unit":"EUR"},{"id":"gain_in_profit_or_loss","value":"45000","unit":"EUR"},{"id":"gain_in_oci","value":"18000","unit":"EUR"},{"id":"purchases","value":"120000","unit":"EUR"},{"id":"sales","value":"75000","unit":"EUR"},{"id":"transfers_in","value":"30000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Opening balance","es":""},"value":"640000","unit":"EUR"},{"label":{"fr":"","en":"Gains in profit or loss","es":""},"value":"45000","unit":"EUR"},{"label":{"fr":"","en":"Gains in other comprehensive income","es":""},"value":"18000","unit":"EUR"},{"label":{"fr":"","en":"Purchases","es":""},"value":"120000","unit":"EUR"},{"label":{"fr":"","en":"Sales","es":""},"value":"75000","unit":"EUR"},{"label":{"fr":"","en":"Transfers into Level 3","es":""},"value":"30000","unit":"EUR"}],"steps":[{"id":"CLOSING_BALANCE","label":{"fr":"","en":"Closing balance","es":""},"answer":778000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"CLOSING_BALANCE","meaning":{"fr":"","en":"Closing balance","es":""},"expression":"a + b + c + d - e + f","variables":[{"symbol":"a","meaning":{"fr":"","en":"Opening balance","es":""},"value":640000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Gains in profit or loss","es":""},"value":45000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Gains in other comprehensive income","es":""},"value":18000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Purchases","es":""},"value":120000,"unit":"EUR"},{"symbol":"e","meaning":{"fr":"","en":"Sales","es":""},"value":75000,"unit":"EUR"},{"symbol":"f","meaning":{"fr":"","en":"Transfers into Level 3","es":""},"value":30000,"unit":"EUR"}],"result":778000,"unit":"EUR"}],"rationale":{"fr":"","en":"the reconciliation of Level 3 balances explains the whole difference between opening and closing (para. 93).","es":""},"references":["REF.IFRS13.93"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000167","standard_id":"IFRS13","concept_ids":["IFRS13.DISCLOSURE.LEVEL3_RECONCILIATION"],"dimension":"CALCULATION","context":"V1_VG.IFRS13.000104","tested_point":"VG.IFRS13.000104","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000013","section_id":"rule-level3"},"references":["IFRS 13 §93"],"exercise":{"prompt":{"fr":"","en":"For the Level 3 class 'unlisted securities' (recurring measurements, case data), the balance at the start of the year is {balance_at_start}. Movements for the year: loss in profit or loss {loss_in_profit_or_loss}, gain in other comprehensive income {gain_in_oci}, acquisitions {acquisitions}, settlements {settlements} and transfers out of Level 3 {transfers_out}. What closing balance must the reconciliation show?","es":""},"explanation":{"fr":"","en":"Approach: start from the opening balance, add the positive movements (gain in other comprehensive income, acquisitions) and deduct the negative ones (loss in profit or loss, settlements, transfers out) (IFRS 13, para. 93). Calculation: 1,215,000 − 60,000 + 22,000 + 310,000 − 140,000 − 85,000 = 1,262,000. Trap: treating the loss as a gain or forgetting the transfers out. Rule to remember: every movement of the period appears in the reconciliation of Level 3 balances (para. 93).","es":""},"common_error":{"fr":"","en":"Leaving a movement (purchases, sales, transfers, profit or loss, other comprehensive income) out of the reconciliation.","es":""},"format":"CALCULATION","placeholders":[{"id":"balance_at_start","value":"1215000","unit":"EUR"},{"id":"loss_in_profit_or_loss","value":"60000","unit":"EUR"},{"id":"gain_in_oci","value":"22000","unit":"EUR"},{"id":"acquisitions","value":"310000","unit":"EUR"},{"id":"settlements","value":"140000","unit":"EUR"},{"id":"transfers_out","value":"85000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Balance at start","es":""},"value":"1215000","unit":"EUR"},{"label":{"fr":"","en":"Loss in profit or loss","es":""},"value":"60000","unit":"EUR"},{"label":{"fr":"","en":"Gain in other comprehensive income","es":""},"value":"22000","unit":"EUR"},{"label":{"fr":"","en":"Acquisitions","es":""},"value":"310000","unit":"EUR"},{"label":{"fr":"","en":"Settlements","es":""},"value":"140000","unit":"EUR"},{"label":{"fr":"","en":"Transfers out of Level 3","es":""},"value":"85000","unit":"EUR"}],"steps":[{"id":"BALANCE_AT_END","label":{"fr":"","en":"Balance at end","es":""},"answer":1262000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"BALANCE_AT_END","meaning":{"fr":"","en":"Balance at end","es":""},"expression":"a - b + c + d - e - f","variables":[{"symbol":"a","meaning":{"fr":"","en":"Balance at start","es":""},"value":1215000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Loss in profit or loss","es":""},"value":60000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Gain in other comprehensive income","es":""},"value":22000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Acquisitions","es":""},"value":310000,"unit":"EUR"},{"symbol":"e","meaning":{"fr":"","en":"Settlements","es":""},"value":140000,"unit":"EUR"},{"symbol":"f","meaning":{"fr":"","en":"Transfers out of Level 3","es":""},"value":85000,"unit":"EUR"}],"result":1262000,"unit":"EUR"}],"rationale":{"fr":"","en":"every movement of the period appears in the reconciliation of Level 3 balances (para. 93).","es":""},"references":["REF.IFRS13.93"]}},"scope":"CORE_STUDENT","reserve":true},{"key":"QST.IFRS13.000168","standard_id":"IFRS13","concept_ids":["IFRS13.DISCLOSURE.LEVEL3_RECONCILIATION"],"dimension":"CALCULATION","context":"V1_QST.IFRS13.000168","tested_point":"QST.IFRS13.000168","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000013","section_id":"rule-level3"},"references":["IFRS 13 §93"],"exercise":{"prompt":{"fr":"","en":"The Level 3 reconciliation of a class (recurring measurements, case data) starts from an opening balance of {opening}. Movements for the year: gain in profit or loss {gain_in_pl}, purchases {purchased} and sales {sold}. The published closing balance is {reported_closing}. Compute the unexplained difference (calculated closing balance less published closing balance).","es":""},"explanation":{"fr":"","en":"Approach: recompute the closing balance from the opening balance and the movements, then compare it with the published balance (IFRS 13, para. 93). Calculation: 520,000 + 30,000 + 90,000 − 40,000 = 600,000; 600,000 − 590,000 = 10,000. Trap: concluding that the reconciliation is complete without recomputing, when a movement is missing or an error remains. Rule to remember: the reconciliation of Level 3 balances must explain the difference between opening and closing (para. 93).","es":""},"common_error":{"fr":"","en":"Leaving a movement out of the reconciliation and failing to detect the closing difference.","es":""},"format":"CALCULATION","placeholders":[{"id":"opening","value":"520000","unit":"EUR"},{"id":"gain_in_pl","value":"30000","unit":"EUR"},{"id":"purchased","value":"90000","unit":"EUR"},{"id":"sold","value":"40000","unit":"EUR"},{"id":"reported_closing","value":"590000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Opening balance","es":""},"value":"520000","unit":"EUR"},{"label":{"fr":"","en":"Gain in profit or loss","es":""},"value":"30000","unit":"EUR"},{"label":{"fr":"","en":"Purchases","es":""},"value":"90000","unit":"EUR"},{"label":{"fr":"","en":"Sales","es":""},"value":"40000","unit":"EUR"},{"label":{"fr":"","en":"Published closing balance","es":""},"value":"590000","unit":"EUR"}],"steps":[{"id":"UNEXPLAINED_DIFFERENCE","label":{"fr":"","en":"Unexplained difference","es":""},"answer":10000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"UNEXPLAINED_DIFFERENCE","meaning":{"fr":"","en":"Unexplained difference","es":""},"expression":"(a + b + c - d) - e","variables":[{"symbol":"a","meaning":{"fr":"","en":"Opening balance","es":""},"value":520000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Gain in profit or loss","es":""},"value":30000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Purchases","es":""},"value":90000,"unit":"EUR"},{"symbol":"d","meaning":{"fr":"","en":"Sales","es":""},"value":40000,"unit":"EUR"},{"symbol":"e","meaning":{"fr":"","en":"Published closing balance","es":""},"value":590000,"unit":"EUR"}],"result":10000,"unit":"EUR"}],"rationale":{"fr":"","en":"the reconciliation of Level 3 balances must explain the difference between opening and closing (para. 93).","es":""},"references":["REF.IFRS13.93"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000169","standard_id":"IFRS13","concept_ids":["IFRS13.DISCLOSURE.LEVEL3_RECONCILIATION"],"dimension":"ANALYSIS","context":"V1_QST.IFRS13.000169","tested_point":"QST.IFRS13.000169","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000013","section_id":"rule-level3"},"references":["IFRS 13 §93"],"exercise":{"prompt":{"fr":"","en":"For a Level 3 class measured on a recurring basis (case data), a group publishes a reconciliation that moves from an opening balance of 800 to a closing balance of 950, detailing only profit or loss (+ 60). The year's purchases (+ 120) and sales (− 30) do not appear. What is the error?","es":""},"explanation":{"fr":"","en":"The reconciliation of Level 3 balances must explain the difference between the opening balance (800) and the closing balance (950), that is 150: 60 profit or loss + 120 purchases − 30 sales = 150 (IFRS 13, para. 93). By omitting purchases and sales, the reconciliation presented does not close.","es":""},"common_error":{"fr":"","en":"Leaving a movement (purchases, sales, transfers, profit or loss, other comprehensive income) out of the reconciliation.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The reconciliation should show only profit or loss, purchases and sales belonging to other notes.","es":""},"correct":false,"feedback":{"fr":"","en":"The reconciliation concerns Level 3 balances and must explain the difference between opening and closing (IFRS 13, para. 93). Restricting it to profit or loss leaves 90 unexplained. Rule to remember: all movements of the period appear in the reconciliation (para. 93).","es":""}},{"id":"B","text":{"fr":"","en":"The reconciliation concerns only Level 1 measurements, not Level 3 ones.","es":""},"correct":false,"feedback":{"fr":"","en":"The reconciliation concerns precisely Level 3 balances (IFRS 13, para. 93): it is not about Level 1. The flaw is the omission of movements. Rule to remember: the reconciliation is aimed at Level 3 and details its movements (para. 93).","es":""}},{"id":"C","text":{"fr":"","en":"The reconciliation must be replaced by publishing the closing balance alone.","es":""},"correct":false,"feedback":{"fr":"","en":"Publishing the closing balance alone would remove the information: the entity provides the reconciliation of Level 3 balances (IFRS 13, para. 93). Rule to remember: the reconciliation is a required disclosure, not an internal document (para. 93).","es":""}},{"id":"D","text":{"fr":"","en":"The reconciliation does not explain the whole difference between opening and closing: movements are missing.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000170","standard_id":"IFRS13","concept_ids":["IFRS13.DISCLOSURE.LEVEL3_RECONCILIATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000170","tested_point":"QST.IFRS13.000170","difficulty":"ADVANCED","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000013","section_id":"rule-level3"},"references":["IFRS 13 §93"],"exercise":{"prompt":{"fr":"","en":"Which statements about the reconciliation of recurring Level 3 measurements are consistent with the standard?","es":""},"explanation":{"fr":"","en":"The information by class includes the reconciliation of Level 3 balances and the effect on profit or loss (IFRS 13, para. 93). The reconciliation concerns Level 3, from opening to closing; it is not optional and does not target Level 1.","es":""},"common_error":{"fr":"","en":"Leaving a movement out of the reconciliation or making it optional.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It is optional when the Level 3 amounts are small.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard does not make the reconciliation optional according to the amount: it is part of the information by class on Level 3 (IFRS 13, para. 93). Rule to remember: the Level 3 reconciliation is part of the required disclosures (para. 93).","es":""}},{"id":"B","text":{"fr":"","en":"It reconciles the opening balance and the closing balance of Level 3 measurements.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It is provided by class of assets and liabilities.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It concerns Level 1 measurements, whose prices are published.","es":""},"correct":false,"feedback":{"fr":"","en":"The reconciliation concerns Level 3 balances (IFRS 13, para. 93). Rule to remember: the reconciliation concerns Level 3, not Level 1 (para. 93).","es":""}},{"id":"E","text":{"fr":"","en":"The effect on profit or loss of Level 3 measurements is part of the information provided.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000171","standard_id":"IFRS13","concept_ids":["IFRS13.DISCLOSURE.LEVEL3_SENSITIVITY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000171","tested_point":"QST.IFRS13.000171","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":105,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000013","section_id":"rule-level3"},"references":["IFRS 13 §93"],"exercise":{"prompt":{"fr":"","en":"For recurring Level 3 measurements, what information about unobservable inputs does the entity provide in addition to the reconciliation of balances?","es":""},"explanation":{"fr":"","en":"Among the information by class are, for Level 3, the reconciliation of balances, the effect on profit or loss, the valuation process and the sensitivity to unobservable inputs (IFRS 13, para. 93). The latter makes it possible to assess the uncertainty of the measurement.","es":""},"common_error":{"fr":"","en":"Omitting the sensitivity to unobservable inputs for recurring Level 3 measurements.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"None, the reconciliation of balances being enough to inform users about unobservable inputs.","es":""},"correct":false,"feedback":{"fr":"","en":"The reconciliation explains the change in balances, but it does not inform about unobservable inputs: the standard also provides for the valuation process and the sensitivity to unobservable inputs (IFRS 13, para. 93). Rule to remember: reconciliation and sensitivity meet two different needs (para. 93).","es":""}},{"id":"B","text":{"fr":"","en":"The valuation process and the sensitivity of the measurement to unobservable inputs.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The list of observable inputs used, without reference to unobservable inputs.","es":""},"correct":false,"feedback":{"fr":"","en":"Listing observable inputs does not meet the requirement: the information aims at the sensitivity to unobservable inputs and the valuation process (IFRS 13, para. 93). Rule to remember: it is unobservable inputs that call for the information (para. 93).","es":""}},{"id":"D","text":{"fr":"","en":"The sensitivity of the measurement to the observable Level 2 inputs alone.","es":""},"correct":false,"feedback":{"fr":"","en":"The sensitivity required concerns unobservable inputs, not the observable Level 2 inputs (IFRS 13, para. 93). Rule to remember: the sensitivity information relates to what is unobservable (para. 93).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000172","standard_id":"IFRS13","concept_ids":["IFRS13.DISCLOSURE.LEVEL3_SENSITIVITY"],"dimension":"ANALYSIS","context":"V1_QST.IFRS13.000172","tested_point":"QST.IFRS13.000172","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":105,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000013","section_id":"rule-level3"},"references":["IFRS 13 §93"],"exercise":{"prompt":{"fr":"","en":"For its recurrently measured Level 3 assets, a group publishes the fair value, the technique and the reconciliation of balances, but nothing on the sensitivity of the measurement to unobservable inputs. What is the reviewer's conclusion?","es":""},"explanation":{"fr":"","en":"For recurring Level 3 measurements, the information by class includes the sensitivity of the measurement to unobservable inputs, in addition to the reconciliation and the technique (IFRS 13, para. 93). Without it, users cannot assess the uncertainty of the measurement.","es":""},"common_error":{"fr":"","en":"Omitting the sensitivity to unobservable inputs for recurring Level 3 measurements.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Nothing to say: sensitivity is required for Level 2 only.","es":""},"correct":false,"feedback":{"fr":"","en":"Sensitivity to unobservable inputs concerns Level 3, where those inputs are used, not Level 2 (IFRS 13, para. 93). Excluding this information for Level 3 is an error. Rule to remember: sensitivity is Level 3 information (para. 93).","es":""}},{"id":"B","text":{"fr":"","en":"Nothing to say: the reconciliation of balances replaces the information on sensitivity.","es":""},"correct":false,"feedback":{"fr":"","en":"The reconciliation and the sensitivity are two distinct items in the list of disclosures by class: one explains the change in balances, the other the uncertainty linked to unobservable inputs. Rule to remember: one does not replace the other (para. 93).","es":""}},{"id":"C","text":{"fr":"","en":"Incomplete: sensitivity to unobservable inputs is part of the Level 3 disclosures.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"The omission is allowed as long as Level 3 amounts stay below last year's.","es":""},"correct":false,"feedback":{"fr":"","en":"Comparing with last year's amounts does not remove the disclosure: the sensitivity to unobservable inputs is part of the information by class for Level 3 (IFRS 13, para. 93). Rule to remember: the requirement does not depend on the change in amounts (para. 93).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000173","standard_id":"IFRS13","concept_ids":["IFRS13.DISCLOSURE.NOT_AT_FAIR_VALUE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000173","tested_point":"QST.IFRS13.000173","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000013","section_id":"rule-other"},"references":["IFRS 13 §97"],"exercise":{"prompt":{"fr":"","en":"A loan measured at amortised cost in Sorvane's accounts nevertheless has its fair value disclosed in the notes. What must the entity state about that fair value?","es":""},"explanation":{"fr":"","en":"For items not measured at fair value but whose fair value is disclosed, the entity states the level of the hierarchy and, for Levels 2 and 3, the techniques and inputs used (IFRS 13, para. 97). The amount alone is not enough.","es":""},"common_error":{"fr":"","en":"Providing a fair value without stating its hierarchy level.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Nothing more than its amount, since the loan is not measured at fair value in the balance sheet.","es":""},"correct":false,"feedback":{"fr":"","en":"The fact that the loan is not measured at fair value in the balance sheet is no exemption: where the fair value is disclosed, the entity states the level of the hierarchy and, for Levels 2 and 3, the techniques and inputs (IFRS 13, para. 97). Rule to remember: a disclosed fair value comes with its level (para. 97).","es":""}},{"id":"B","text":{"fr":"","en":"Only the level of the hierarchy, without technique or inputs, whatever that level.","es":""},"correct":false,"feedback":{"fr":"","en":"For Levels 2 and 3, the level alone is not enough: the techniques and inputs used are also stated (IFRS 13, para. 97). Rule to remember: level and, for Levels 2 and 3, technique and inputs (para. 97).","es":""}},{"id":"C","text":{"fr":"","en":"The acquisition date of the loan and its original cost, which replace the level information.","es":""},"correct":false,"feedback":{"fr":"","en":"The acquisition date and original cost do not replace the hierarchy information: the level must be stated and, for Levels 2 and 3, the techniques and inputs (IFRS 13, para. 97). Rule to remember: cost does not stand in for information about fair value (para. 97).","es":""}},{"id":"D","text":{"fr":"","en":"The hierarchy level and, for Levels 2 and 3, the techniques and inputs used.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000174","standard_id":"IFRS13","concept_ids":["IFRS13.DISCLOSURE.NOT_AT_FAIR_VALUE"],"dimension":"ANALYSIS","context":"V1_QST.IFRS13.000174","tested_point":"QST.IFRS13.000174","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000013","section_id":"rule-other"},"references":["IFRS 13 §97"],"exercise":{"prompt":{"fr":"","en":"A group's notes give, for financial liabilities at amortised cost whose fair value is disclosed, only the fair value amount. What is the error?","es":""},"explanation":{"fr":"","en":"Where the fair value of an item not measured at fair value is disclosed, the entity states the level of the hierarchy and, for Levels 2 and 3, the techniques and inputs used (IFRS 13, para. 97). An amount alone does not meet this requirement.","es":""},"common_error":{"fr":"","en":"Providing a fair value without stating its hierarchy level.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The notes omit the level of the hierarchy and, for Levels 2 and 3, the techniques and inputs used.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The fair value is wrongly disclosed: only items measured at fair value in the balance sheet are concerned.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard precisely covers the case of items not measured at fair value whose fair value is disclosed: the entity states the level and the techniques and inputs (IFRS 13, para. 97). It is therefore not the disclosure of fair value that is at issue. Rule to remember: items at amortised cost with a disclosed fair value are covered (para. 97).","es":""}},{"id":"C","text":{"fr":"","en":"The information is complete: the hierarchy level is never required for an item at amortised cost.","es":""},"correct":false,"feedback":{"fr":"","en":"The hierarchy level is required when the fair value of an item not measured at fair value is disclosed (IFRS 13, para. 97). Saying it is never required is wrong. Rule to remember: fair value disclosed, level stated (para. 97).","es":""}},{"id":"D","text":{"fr":"","en":"The amount should have been replaced by the amortised cost, fair value not being required for these liabilities.","es":""},"correct":false,"feedback":{"fr":"","en":"The question assumes the fair value is disclosed: the entity must then state the level of the hierarchy and, for Levels 2 and 3, the techniques and inputs (IFRS 13, para. 97). Replacing the amount with amortised cost would remove the information. Rule to remember: a disclosed fair value is completed, not removed (para. 97).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000175","standard_id":"IFRS13","concept_ids":["IFRS13.DISCLOSURE.LIABILITY_CREDIT_ENHANCEMENT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000175","tested_point":"QST.IFRS13.000175","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000013","section_id":"rule-other"},"references":["IFRS 13 §98"],"exercise":{"prompt":{"fr":"","en":"A liability measured at fair value was issued with an inseparable credit enhancement provided by a third party. What must the entity disclose?","es":""},"explanation":{"fr":"","en":"For a liability measured at fair value and issued with an inseparable credit enhancement, the entity states the existence of the enhancement and whether it is reflected in the measurement (IFRS 13, para. 98).","es":""},"common_error":{"fr":"","en":"Omitting to state whether the credit enhancement is reflected in the measurement.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The existence of the enhancement and whether it is reflected in the measurement.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The name of the guarantor, without stating whether the enhancement is reflected in the measurement.","es":""},"correct":false,"feedback":{"fr":"","en":"Naming the guarantor does not meet the requirement: the existence of the enhancement and whether it is reflected in the measurement must be stated (IFRS 13, para. 98). Rule to remember: the information concerns whether the enhancement is taken into account in the measurement (para. 98).","es":""}},{"id":"C","text":{"fr":"","en":"Nothing, the enhancement being a matter between the issuer and the third party.","es":""},"correct":false,"feedback":{"fr":"","en":"An inseparable credit enhancement is the subject of disclosure: the entity states its existence and whether it is reflected in the measurement (IFRS 13, para. 98). Saying nothing deprives users of this information. Rule to remember: existence of the enhancement and whether it is reflected in the measurement (para. 98).","es":""}},{"id":"D","text":{"fr":"","en":"The amount of the enhancement alone, without mention of its effect on the measurement.","es":""},"correct":false,"feedback":{"fr":"","en":"The amount alone is not enough: the information required is the existence of the enhancement and whether or not it is reflected in the measurement (IFRS 13, para. 98). Rule to remember: one states whether the measurement takes the enhancement into account (para. 98).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000176","standard_id":"IFRS13","concept_ids":["IFRS13.DISCLOSURE.TABULAR_FORMAT"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000176","tested_point":"QST.IFRS13.000176","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":35,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000013","section_id":"rule-content"},"references":["IFRS 13 §99"],"exercise":{"prompt":{"fr":"","en":"Unless another format is more appropriate, the quantitative disclosures required by IFRS 13 about fair value measurements are presented in tabular format.","es":""},"explanation":{"fr":"","en":"True. Quantitative disclosures are presented in tabular format unless another format is more appropriate (IFRS 13, para. 99). Approach: identify the default format, then the exception. Trap: believing the table is required in every case, or that it is prohibited. Rule to remember: the table is the default format for quantitative disclosures, another format being allowed if it is more appropriate (para. 99).","es":""},"common_error":{"fr":"","en":"Believing the tabular format is required with no exception.","es":""},"format":"TRUE_FALSE","answer":true},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000177","standard_id":"IFRS13","concept_ids":["IFRS13.TRANSITION.EFFECTIVE_DATE"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000177","tested_point":"QST.IFRS13.000177","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":35,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000014","section_id":"rule"},"references":["IFRS 13 §C1"],"exercise":{"prompt":{"fr":"","en":"IFRS 13 applies to annual periods beginning on or after 1 January 2013 and can in no case be applied early.","es":""},"explanation":{"fr":"","en":"False. IFRS 13 applies to annual periods beginning on or after 1 January 2013, and early application is permitted, provided that fact is disclosed (IFRS 13, para. C1). Approach: separate the effective date from the option of early application. Trap: confusing the mandatory date with the earliest possible date. Rule to remember: mandatory for annual periods beginning on or after 1 January 2013; early application permitted with disclosure of that fact (para. C1).","es":""},"common_error":{"fr":"","en":"Believing that the effective date rules out any early application.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000178","standard_id":"IFRS13","concept_ids":["IFRS13.TRANSITION.PROSPECTIVE_APPLICATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000178","tested_point":"QST.IFRS13.000178","difficulty":"BEGINNER","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":35,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000014","section_id":"rule"},"references":["IFRS 13 §C3"],"exercise":{"prompt":{"fr":"","en":"On first application of IFRS 13, what does the standard provide for the disclosures relating to comparative periods before the first application?","es":""},"explanation":{"fr":"","en":"The disclosure requirements of IFRS 13 need not be applied to comparative information provided for periods before the initial application of the standard (IFRS 13, para. C3).","es":""},"common_error":{"fr":"","en":"Restating comparative information for periods before initial application.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"They must be prepared retrospectively for all comparative periods presented.","es":""},"correct":false,"feedback":{"fr":"","en":"Retrospective preparation of the information is not required: the disclosure requirements need not be applied to comparative information provided for periods before initial application (IFRS 13, para. C3). Rule to remember: no restatement of comparative information for periods before initial application (para. C3).","es":""}},{"id":"B","text":{"fr":"","en":"They are replaced by a general statement, with no figures, for the comparative periods.","es":""},"correct":false,"feedback":{"fr":"","en":"The standard provides for no general substitute statement: it exempts from applying the disclosure requirements to comparative information for periods before initial application (IFRS 13, para. C3). Rule to remember: the relief concerns applying the requirements, not a substitute statement (para. C3).","es":""}},{"id":"C","text":{"fr":"","en":"They need not be applied to comparative information provided for periods before initial application.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"They are required for the comparative periods, but only for Level 3 measurements.","es":""},"correct":false,"feedback":{"fr":"","en":"No requirement limited to Level 3 is provided for those periods: the disclosure requirements need not be applied to comparative information for periods before initial application (IFRS 13, para. C3). Rule to remember: the relief covers all the earlier comparative information (para. C3).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000179","standard_id":"IFRS13","concept_ids":["IFRS13.INTERACTIONS.IAS16_REVALUATION"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000179","tested_point":"QST.IFRS13.000179","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000015","section_id":"rule-ppe"},"references":["IFRS 13 §27"],"exercise":{"prompt":{"fr":"","en":"A group has chosen the revaluation model of IAS 16 for its land. What is IFRS 13's part in measuring a revalued piece of land?","es":""},"explanation":{"fr":"","en":"IFRS 13 provides the fair value measurement method, which for a non-financial asset takes account of use by a market participant in its highest and best use (IFRS 13, para. 27). IAS 16 keeps the choice between the cost model and the revaluation model and the treatment of fair value within the revaluation model.","es":""},"common_error":{"fr":"","en":"Attributing to IFRS 13 the choice of the revaluation model or the treatment of the difference.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IFRS 13 requires the group to adopt the revaluation model rather than the cost model.","es":""},"correct":false,"feedback":{"fr":"","en":"The choice between the cost model and the revaluation model is an accounting policy governed by IAS 16, not IFRS 13. Attributing that choice to IFRS 13 confuses the measurement method with the accounting policy. Rule to remember: IAS 16 keeps the choice of model.","es":""}},{"id":"B","text":{"fr":"","en":"IFRS 13 provides the fair value method; IAS 16 keeps the choice of model.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"IFRS 13 decides whether the increase in value goes to other comprehensive income or to profit or loss.","es":""},"correct":false,"feedback":{"fr":"","en":"The treatment of the revaluation difference belongs to IAS 16: an increase goes to other comprehensive income, unless it reverses an earlier decrease recognised in profit or loss. IFRS 13 does not set this allocation. Rule to remember: IFRS 13 measures, IAS 16 accounts for the difference.","es":""}},{"id":"D","text":{"fr":"","en":"IFRS 13 replaces IAS 16 for every subsequent measurement of the land, including depreciation.","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 13 does not replace IAS 16: it provides the fair value method used for the revaluation (IFRS 13, para. 27; IAS 16), but recognition, the choice of model and the treatment of the difference remain with IAS 16. Rule to remember: two standards, two distinct roles (IAS 16).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000180","standard_id":"IFRS13","concept_ids":["IFRS13.INTERACTIONS.IAS16_REVALUATION"],"dimension":"CALCULATION","context":"V1_QST.IFRS13.000180","tested_point":"QST.IFRS13.000180","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000015","section_id":"rule-ppe"},"references":["IFRS 13 §27"],"exercise":{"prompt":{"fr":"","en":"A piece of land is carried at {carrying_amount}. At the revaluation date (IAS 16 revaluation model), its fair value determined under IFRS 13 is {fair_value_ifrs13}. A decrease of {previous_decrease_in_pl} on the same land had been recognised in profit or loss at an earlier revaluation. What amount is recognised in other comprehensive income?","es":""},"explanation":{"fr":"","en":"Approach: IFRS 13 provides the fair value (IFRS 13, para. 27); IAS 16 decides how the difference is treated. An increase is recognised in other comprehensive income, unless it reverses a decrease of the same asset recognised in profit or loss (IAS 16). Calculation: 560,000 − 500,000 = 60,000; reversal in profit or loss: 20,000; other comprehensive income: 60,000 − 20,000 = 40,000. Trap: taking the whole 60,000 to other comprehensive income. Rule to remember: the increase first reverses the earlier decrease in profit or loss (IAS 16).","es":""},"common_error":{"fr":"","en":"Taking the whole increase to other comprehensive income without allowing for the earlier decrease.","es":""},"format":"CALCULATION","placeholders":[{"id":"carrying_amount","value":"500000","unit":"EUR"},{"id":"fair_value_ifrs13","value":"560000","unit":"EUR"},{"id":"previous_decrease_in_pl","value":"20000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Carrying amount of the land","es":""},"value":"500000","unit":"EUR"},{"label":{"fr":"","en":"Fair value under IFRS 13","es":""},"value":"560000","unit":"EUR"},{"label":{"fr":"","en":"Earlier decrease recognised in profit or loss","es":""},"value":"20000","unit":"EUR"}],"steps":[{"id":"OCI_INCREASE","label":{"fr":"","en":"Increase recognised in other comprehensive income","es":""},"answer":40000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"OCI_INCREASE","meaning":{"fr":"","en":"Increase recognised in other comprehensive income","es":""},"expression":"(a - b) - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value under IFRS 13","es":""},"value":560000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Carrying amount of the land","es":""},"value":500000,"unit":"EUR"},{"symbol":"c","meaning":{"fr":"","en":"Earlier decrease recognised in profit or loss","es":""},"value":20000,"unit":"EUR"}],"result":40000,"unit":"EUR"}],"rationale":{"fr":"","en":"the increase first reverses the earlier decrease in profit or loss (IAS 16).","es":""},"references":["REF.IFRS13.27"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000181","standard_id":"IFRS13","concept_ids":["IFRS13.INTERACTIONS.IAS16_REVALUATION"],"dimension":"ANALYSIS","context":"V1_QST.IFRS13.000181","tested_point":"QST.IFRS13.000181","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000015","section_id":"rule-ppe"},"references":["IFRS 13 §27"],"exercise":{"prompt":{"fr":"","en":"A controller reads a group's note on the revaluation of its operating buildings. Which of these statements is wrong?","es":""},"explanation":{"fr":"","en":"The allocation of the revaluation difference belongs to IAS 16: an increase goes to other comprehensive income, unless it reverses an earlier decrease of the same asset in profit or loss. IFRS 13 provides the fair value (para. 27); IAS 16 keeps the choice of model.","es":""},"common_error":{"fr":"","en":"Attributing to IFRS 13 the choice of the revaluation model or the treatment of the difference.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The fair value used for the revaluation is determined under IFRS 13.","es":""},"correct":false,"feedback":{"fr":"","en":"This statement is correct: IFRS 13 provides the fair value measurement method, considering for a non-financial asset the highest and best use by a market participant (IFRS 13, para. 27). The error is in the statement that gives IFRS 13 an accounting role. Rule to remember: IFRS 13 provides the fair value (para. 27).","es":""}},{"id":"B","text":{"fr":"","en":"The choice between the cost model and the revaluation model is governed by IAS 16.","es":""},"correct":false,"feedback":{"fr":"","en":"This statement is correct: the choice of the cost model or the revaluation model is an accounting policy governed by IAS 16. The error is in the statement that attributes to IFRS 13 the treatment of the difference. Rule to remember: IAS 16 keeps the choice of model.","es":""}},{"id":"C","text":{"fr":"","en":"The increase of a revalued building goes to other comprehensive income, unless it reverses an earlier decrease recognised in profit or loss.","es":""},"correct":false,"feedback":{"fr":"","en":"This statement is correct: under IAS 16, an increase is taken to other comprehensive income, unless it reverses an earlier decrease of the same asset in profit or loss. The error is elsewhere. Rule to remember: IAS 16 describes the allocation of the difference.","es":""}},{"id":"D","text":{"fr":"","en":"IFRS 13 decides that any increase in value of a revalued building is recognised in profit or loss.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000182","standard_id":"IFRS13","concept_ids":["IFRS13.INTERACTIONS.IAS38_ACTIVE_MARKET"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000182","tested_point":"QST.IFRS13.000182","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000015","section_id":"rule-ppe"},"references":["IFRS 13"],"exercise":{"prompt":{"fr":"","en":"An entity considers applying the revaluation model to a freely transferable fishing licence, an intangible asset. Which condition of IAS 38 must be met?","es":""},"explanation":{"fr":"","en":"Under the revaluation model, the fair value of an intangible asset is determined by reference to an active market (IAS 38, para. 75). An active market is rare for these assets, but some jurisdictions have one for freely transferable fishing licences (IAS 38, para. 78). The notion of active market is defined in Appendix A of IFRS 13.","es":""},"common_error":{"fr":"","en":"Revaluing an intangible asset on the basis of a non-active market.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The fair value can be estimated by an internal discounting of cash flows, without reference to a market.","es":""},"correct":false,"feedback":{"fr":"","en":"An internal discounting does not meet the condition: under the revaluation model, the fair value of an intangible asset is determined by reference to an active market (IAS 38, para. 75). Rule to remember: without an active market, no revaluation of the intangible (IAS 38, para. 75).","es":""}},{"id":"B","text":{"fr":"","en":"The fair value is determined by reference to an active market, the definition of which refers to IFRS 13.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"An independent expert's opinion can replace the existence of an active market for this asset.","es":""},"correct":false,"feedback":{"fr":"","en":"An expert's opinion does not create an active market: fair value must be determined by reference to an active market (IAS 38, para. 75). For freely transferable fishing licences, such a market may exist in some jurisdictions (IAS 38, para. 78). Rule to remember: it is the active market that conditions the revaluation, not expertise (IAS 38, para. 75).","es":""}},{"id":"D","text":{"fr":"","en":"No condition: IFRS 13 permits the revaluation of any intangible asset.","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 13 does not permit the revaluation of any intangible asset: it is IAS 38 that frames the revaluation model and requires an active market (IAS 38, para. 75). Rule to remember: IFRS 13 defines fair value, IAS 38 sets the conditions for revaluation (IAS 38, para. 75).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000183","standard_id":"IFRS13","concept_ids":["IFRS13.INTERACTIONS.IAS38_ACTIVE_MARKET"],"dimension":"ANALYSIS","context":"V1_QST.IFRS13.000183","tested_point":"QST.IFRS13.000183","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000015","section_id":"rule-ppe"},"references":["IFRS 13"],"exercise":{"prompt":{"fr":"","en":"A group revalues an acquired brand relying on the price of a few sales of brands from other sectors, concluded rarely and case by case. What is the error?","es":""},"explanation":{"fr":"","en":"Revaluing an intangible asset requires a fair value determined by reference to an active market (IAS 38, para. 75), a notion defined in Appendix A of IFRS 13. An active market cannot exist for brands, each being unique, and the price paid for one asset does not prove the fair value of another (IAS 38, para. 78).","es":""},"common_error":{"fr":"","en":"Revaluing an intangible asset on the basis of a non-active market.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It should have discounted the price of the rare sales at an internally set rate.","es":""},"correct":false,"feedback":{"fr":"","en":"Discounting the price of rare sales does not create an active market: under the revaluation model, fair value is determined by reference to an active market (IAS 38, para. 75). The flaw lies in the absence of an active market for brands (IAS 38, para. 78). Rule to remember: an internal rate does not replace an active market (IAS 38, para. 75).","es":""}},{"id":"B","text":{"fr":"","en":"It should have measured the brand at its acquisition cost, with no reference to a market.","es":""},"correct":false,"feedback":{"fr":"","en":"Measuring at acquisition cost is not a revaluation: the revaluation model assumes a fair value determined by reference to an active market (IAS 38, para. 75). The group must keep the cost model if that market does not exist. Rule to remember: without an active market, one stays with the cost model (IAS 38, para. 75).","es":""}},{"id":"C","text":{"fr":"","en":"There is no active market for brands, each being unique.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"It should have used the price of the most recent sale, even if it is isolated.","es":""},"correct":false,"feedback":{"fr":"","en":"An isolated price does not prove the fair value of another asset: transactions are infrequent and negotiated case by case (IAS 38, para. 78). Using the most recent one therefore does not cure the flaw. Rule to remember: an isolated transaction does not establish an active market (IAS 38, para. 78).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000184","standard_id":"IFRS13","concept_ids":["IFRS13.INTERACTIONS.IAS36_FVLCD"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000184","tested_point":"QST.IFRS13.000184","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000015","section_id":"rule-fv"},"references":["IFRS 13 §6"],"exercise":{"prompt":{"fr":"","en":"For an impairment test, the recoverable amount under IAS 36 is the higher of two amounts. Which one reflects the assumptions of market participants rather than factors specific to the entity?","es":""},"explanation":{"fr":"","en":"The recoverable amount is the higher of fair value less costs of disposal and value in use (IAS 36, para. 18). The former reflects the assumptions of market participants, the latter entity-specific factors (IFRS 13); value in use is outside the scope of IFRS 13 (IFRS 13, para. 6).","es":""},"common_error":{"fr":"","en":"Equating value in use with an IFRS 13 fair value.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"Fair value less costs of disposal, measured under IFRS 13.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"Both amounts, which are both fair values within the meaning of IFRS 13.","es":""},"correct":false,"feedback":{"fr":"","en":"Only fair value less costs of disposal falls under IFRS 13; value in use is excluded from it (IFRS 13, para. 6) and does not reflect market participants' assumptions (IAS 36, para. 53A). Rule to remember: only one of the two components is a fair value (IFRS 13).","es":""}},{"id":"C","text":{"fr":"","en":"Neither, the recoverable amount depending solely on management's judgement.","es":""},"correct":false,"feedback":{"fr":"","en":"The recoverable amount is the higher of fair value less costs of disposal and value in use (IAS 36, para. 18); one reflects market participants' assumptions, the other entity-specific factors (para. 53A). It is therefore not a pure management judgement. Rule to remember: two components with opposite logics (IFRS 13).","es":""}},{"id":"D","text":{"fr":"","en":"Value in use, because it includes synergies specific to the entity.","es":""},"correct":false,"feedback":{"fr":"","en":"Value in use reflects, on the contrary, factors specific to the entity (synergies, the value of a group of assets, own tax benefits) (IAS 36, para. 53A). It is moreover outside the scope of IFRS 13 (IFRS 13, para. 6). Rule to remember: value in use = entity-specific factors (IAS 36, para. 53A).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000185","standard_id":"IFRS13","concept_ids":["IFRS13.INTERACTIONS.IAS36_FVLCD","IFRS13.MARKET.TRANSACTION_COSTS"],"dimension":"CALCULATION","context":"V1_QST.IFRS13.000185","tested_point":"QST.IFRS13.000185","difficulty":"ADVANCED","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000004","section_id":"rule-costs"},"references":["IFRS 13 §6","IFRS 13 §25"],"exercise":{"prompt":{"fr":"","en":"For an impairment test, the fair value of a unit, determined under IFRS 13 in its principal market, is {fair_value}. Costs of disposal not already recognised as liabilities (legal fees and transaction duties of the planned sale) amount to {costs_of_disposal}. Compute fair value less costs of disposal.","es":""},"explanation":{"fr":"","en":"Approach: the market price is not adjusted for transaction costs in the IFRS 13 fair value (IFRS 13, para. 25); it is IAS 36 that then deducts the costs of disposal not already recognised as liabilities (IAS 36, para. 28). Calculation: 1,850,000 − 62,000 = 1,788,000. Trap: deducting the costs of disposal within the fair value itself, before comparing. Rule to remember: IFRS 13 fair value excludes transaction costs, then costs of disposal are deducted under IAS 36 (IFRS 13, para. 25; IAS 36, para. 28).","es":""},"common_error":{"fr":"","en":"Deducting transaction costs in the IFRS 13 fair value and then deducting the costs of disposal again.","es":""},"format":"CALCULATION","placeholders":[{"id":"fair_value","value":"1850000","unit":"EUR"},{"id":"costs_of_disposal","value":"62000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Fair value under IFRS 13","es":""},"value":"1850000","unit":"EUR"},{"label":{"fr":"","en":"Unrecognised costs of disposal","es":""},"value":"62000","unit":"EUR"}],"steps":[{"id":"FVLCD_AMOUNT","label":{"fr":"","en":"Fair value less costs of disposal","es":""},"answer":1788000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"FVLCD_AMOUNT","meaning":{"fr":"","en":"Fair value less costs of disposal","es":""},"expression":"a - b","variables":[{"symbol":"a","meaning":{"fr":"","en":"Fair value under IFRS 13","es":""},"value":1850000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Unrecognised costs of disposal","es":""},"value":62000,"unit":"EUR"}],"result":1788000,"unit":"EUR"}],"rationale":{"fr":"","en":"IFRS 13 fair value excludes transaction costs, then costs of disposal are deducted under IAS 36 (IFRS 13, para. 25; IAS 36, para. 28).","es":""},"references":["REF.IFRS13.25"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000186","standard_id":"IFRS13","concept_ids":["IFRS13.INTERACTIONS.IAS36_FVLCD"],"dimension":"ANALYSIS","context":"V1_QST.IFRS13.000186","tested_point":"QST.IFRS13.000186","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":80,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000015","section_id":"rule-fv"},"references":["IFRS 13 §6"],"exercise":{"prompt":{"fr":"","en":"A group shows in its fair value table, in Level 3, the value in use of an asset tested for impairment. What is the error?","es":""},"explanation":{"fr":"","en":"Value in use reflects entity-specific factors (IAS 36, para. 53A) and is among the measures close to fair value but not fair value, excluded from the scope of IFRS 13 (IFRS 13, para. 6). Classifying it in the fair value hierarchy is therefore an error.","es":""},"common_error":{"fr":"","en":"Equating value in use with an IFRS 13 fair value.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The value in use should be in Level 1, since it arises from a regulated test.","es":""},"correct":false,"feedback":{"fr":"","en":"Level 1 rests on quoted prices (IFRS 13), which a value in use is not. The flaw is deeper: value in use is not an IFRS 13 fair value (IFRS 13, para. 6). Rule to remember: no level of the hierarchy suits a value in use (para. 6).","es":""}},{"id":"B","text":{"fr":"","en":"The value in use should be replaced in the table by the asset's historical cost.","es":""},"correct":false,"feedback":{"fr":"","en":"Historical cost is not a fair value either: it does not replace information that has no place in this table. The flaw is presenting value in use as a fair value, whereas it is outside the scope of IFRS 13 (IFRS 13, para. 6). Rule to remember: the fair value table does not take value in use (para. 6).","es":""}},{"id":"C","text":{"fr":"","en":"The value in use is correctly presented, because every recoverable amount is a fair value.","es":""},"correct":false,"feedback":{"fr":"","en":"Not every recoverable amount is a fair value: the recoverable amount is the higher of fair value less costs of disposal and value in use, and the latter is outside the scope of IFRS 13 (IFRS 13, para. 6; IAS 36, para. 53A). Rule to remember: only one of the two components is a fair value (para. 6).","es":""}},{"id":"D","text":{"fr":"","en":"Value in use is outside the scope of IFRS 13: it is not a fair value.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000187","standard_id":"IFRS13","concept_ids":["IFRS13.INTERACTIONS.IFRS9"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000187","tested_point":"QST.IFRS13.000187","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":105,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000015","section_id":"rule-fv"},"references":["IFRS 13 §52"],"exercise":{"prompt":{"fr":"","en":"Cobriel enters into a gas purchase contract within the scope of IFRS 9 that does not meet the IAS 32 definitions of a financial asset or financial liability (case data). Which element is decisive in deciding whether this contract falls within the scope of the exception for measuring on a net basis?","es":""},"explanation":{"fr":"","en":"The scope of the exception is that of contracts within the scope of IFRS 9 (or IAS 39), whether or not they meet the IAS 32 definitions of a financial asset or financial liability (IFRS 13, para. 52).","es":""},"common_error":{"fr":"","en":"Making the IAS 32 definitions the criterion for the scope of the exception.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The fact that it is within the scope of IFRS 9 (or IAS 39).","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The fact that it meets the IAS 32 definitions of a financial asset or financial liability.","es":""},"correct":false,"feedback":{"fr":"","en":"The IAS 32 definitions are not the criterion: the exception covers contracts within the scope of IFRS 9 (or IAS 39), whether or not they meet them (IFRS 13, para. 52). Rule to remember: the criterion is the scope of IFRS 9, not the IAS 32 definitions (IFRS 13, para. 52).","es":""}},{"id":"C","text":{"fr":"","en":"The fact that its fair value is positive at the measurement date.","es":""},"correct":false,"feedback":{"fr":"","en":"The sign of the fair value is not the criterion for the scope: it rests on the contract being within the scope of IFRS 9 (or IAS 39) (IFRS 13, para. 52). Rule to remember: the scope does not depend on the sign of the fair value (para. 52).","es":""}},{"id":"D","text":{"fr":"","en":"The fact that it is traded on an organised market.","es":""},"correct":false,"feedback":{"fr":"","en":"Being listed is not the criterion for the scope: it rests on the contract being within the scope of IFRS 9 (or IAS 39) (IFRS 13, para. 52). Rule to remember: the scope does not depend on whether the contract is listed (para. 52).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000188","standard_id":"IFRS13","concept_ids":["IFRS13.INTERACTIONS.IFRS9"],"dimension":"CALCULATION","context":"V1_QST.IFRS13.000188","tested_point":"QST.IFRS13.000188","difficulty":"EXPERT","source":"V1","format":"NUMERICAL","estimated_time_s":150,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000015","section_id":"rule-fv"},"references":["IFRS 13 §60"],"exercise":{"prompt":{"fr":"","en":"An institution acquires an instrument that will pay it a single cash flow of {expected_flow} in {term}. The market rate observed for comparable cash flows is {market_rate}. It pays {price_paid}. Fair value is required at initial recognition (case data). Compute the difference between the fair value obtained by discounting and the transaction price.","es":""},"explanation":{"fr":"","en":"Teaching assumption: fair value is obtained by discounting the cash flow at the observed market rate (case data). Calculation: 1,331,000 / 1.331 = 1,000,000; 1,000,000 − 960,000 = 40,000. Case convention: fair value is required at initial recognition. Trap: recognising the difference without checking whether another standard provides for a different treatment. Rule to remember: where fair value is required at initial recognition and differs from the transaction price, the difference goes to profit or loss unless another standard provides otherwise (IFRS 13, para. 60).","es":""},"common_error":{"fr":"","en":"Making IFRS 13 the standard that decides the treatment of the initial difference.","es":""},"format":"CALCULATION","placeholders":[{"id":"expected_flow","value":"1331000","unit":"EUR"},{"id":"market_rate","value":"10","unit":"PERCENT"},{"id":"term","value":"3","unit":"YEARS"},{"id":"price_paid","value":"960000","unit":"EUR"}],"data":[{"label":{"fr":"","en":"Expected cash flow","es":""},"value":"1331000","unit":"EUR"},{"label":{"fr":"","en":"Market rate observed","es":""},"value":"10","unit":"PERCENT"},{"label":{"fr":"","en":"Time before the cash flow","es":""},"value":"3","unit":"YEARS"},{"label":{"fr":"","en":"Price paid","es":""},"value":"960000","unit":"EUR"}],"steps":[{"id":"INITIAL_DIFFERENCE","label":{"fr":"","en":"Initial difference (fair value less transaction price)","es":""},"answer":40000,"tolerance":0,"unit":"EUR"}],"formula":{"lines":[{"step":"INITIAL_DIFFERENCE","meaning":{"fr":"","en":"Initial difference (fair value less transaction price)","es":""},"expression":"(a / (1 + b)^3) - c","variables":[{"symbol":"a","meaning":{"fr":"","en":"Expected cash flow","es":""},"value":1331000,"unit":"EUR"},{"symbol":"b","meaning":{"fr":"","en":"Market rate observed","es":""},"value":10,"unit":"PERCENT"},{"symbol":"c","meaning":{"fr":"","en":"Price paid","es":""},"value":960000,"unit":"EUR"}],"result":40000,"unit":"EUR"}],"rationale":{"fr":"","en":"where fair value is required at initial recognition and differs from the transaction price, the difference goes to profit or loss unless another standard provides otherwise (IFRS 13, para. 60).","es":""},"references":["REF.IFRS13.60"]}},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000189","standard_id":"IFRS13","concept_ids":["IFRS13.INTERACTIONS.IFRS9"],"dimension":"ANALYSIS","context":"V1_QST.IFRS13.000189","tested_point":"QST.IFRS13.000189","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":105,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000015","section_id":"rule-fv"},"references":["IFRS 13 §52","IFRS 13 §60"],"exercise":{"prompt":{"fr":"","en":"A group's methodology note describes IFRS 13's role for its financial instruments. Which sentence is wrong?","es":""},"explanation":{"fr":"","en":"IFRS 9 decides which instruments are measured at fair value; IFRS 13 provides the method, including the portfolio exception for contracts within the scope of IFRS 9 (IFRS 13, para. 52). Where fair value is required at initial recognition and differs from the transaction price, the difference goes to profit or loss unless another standard provides otherwise (para. 60).","es":""},"common_error":{"fr":"","en":"Making IFRS 13 the standard for classifying financial instruments.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"IFRS 13 provides the fair value measurement method for instruments measured on that basis.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: IFRS 13 provides the method, here the measurement of fair value; it does not decide how instruments are classified. The error is in the sentence that gives it that role. Rule to remember: IFRS 13 measures, it does not classify (IFRS 13, para. 52).","es":""}},{"id":"B","text":{"fr":"","en":"The IFRS 13 portfolio exception covers contracts within the scope of IFRS 9, whether or not they meet the IAS 32 definitions.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: the exception applies to contracts within the scope of IFRS 9, whether or not they meet the IAS 32 definitions (IFRS 13, para. 52). The error concerns the classification of instruments. Rule to remember: the scope of the exception refers back to IFRS 9 (para. 52).","es":""}},{"id":"C","text":{"fr":"","en":"IFRS 13 determines whether a financial instrument is measured at amortised cost or at fair value.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"If the fair value required at initial recognition differs from the transaction price, the difference goes to profit or loss unless another standard provides otherwise.","es":""},"correct":false,"feedback":{"fr":"","en":"This sentence is correct: where fair value is required at initial recognition and differs from the transaction price, the difference is recognised in profit or loss unless another standard provides otherwise (IFRS 13, para. 60). The error is elsewhere. Rule to remember: the treatment of the difference may be specified by another standard (para. 60).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000190","standard_id":"IFRS13","concept_ids":["IFRS13.INTERACTIONS.IFRS9"],"dimension":"APPLICATION","context":"V1_QST.IFRS13.000190","tested_point":"QST.IFRS13.000190","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":105,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000015","section_id":"rule-fv"},"references":["IFRS 13 §60","IFRS 13 §52"],"exercise":{"prompt":{"fr":"","en":"A bank acquires a loan for 960; the applicable standard requires fair value at initial recognition, which comes out at 1,000 by discounting based only on observable market data (case data). In that case, the applicable standard calls for no different treatment of the difference of 40 (case data). What treatment does it adopt?","es":""},"explanation":{"fr":"","en":"Where fair value is required at initial recognition and differs from the transaction price, the difference (here 1,000 − 960 = 40) is recognised in profit or loss unless another standard provides otherwise (IFRS 13, para. 60). The case states that no other provision calls for a different treatment. Effect: a gain of 40 appears in profit or loss.","es":""},"common_error":{"fr":"","en":"Making IFRS 13 the standard that decides the treatment of the initial difference.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"It adds 40 to the transaction price and takes the instrument to 1,000 directly in equity.","es":""},"correct":false,"feedback":{"fr":"","en":"Taking the difference directly to equity is not the treatment provided: where fair value is required at initial recognition and differs from the transaction price, the difference is recognised in profit or loss, unless another standard provides otherwise (IFRS 13, para. 60). Rule to remember: the initial difference goes to profit or loss unless otherwise provided (para. 60).","es":""}},{"id":"B","text":{"fr":"","en":"It recognises the difference of 40 in profit or loss, no other standard providing a different treatment.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"It ignores the difference and keeps the transaction price of 960 as the initial fair value.","es":""},"correct":false,"feedback":{"fr":"","en":"Ignoring the difference amounts to setting aside the fair value required: the difference of 40 exists and, absent a contrary provision, it is recognised in profit or loss (IFRS 13, para. 60). Rule to remember: one does not keep the transaction price against the fair value required (para. 60).","es":""}},{"id":"D","text":{"fr":"","en":"It applies IFRS 13 to defer the difference over the life of the loan, whatever the loan's standard.","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 13 provides for no deferral of the difference: it refers to the standard applicable to the instrument, and the difference goes to profit or loss unless another standard provides otherwise (IFRS 13, para. 60). Rule to remember: any deferral must come from another standard, not from IFRS 13 (para. 60).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000191","standard_id":"IFRS13","concept_ids":["IFRS13.INTERACTIONS.IFRS3"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000191","tested_point":"QST.IFRS13.000191","difficulty":"EXPERT","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":105,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000015","section_id":"rule-fv"},"references":["IFRS 13 §9","IFRS 13 §31"],"exercise":{"prompt":{"fr":"","en":"In a business combination, a group measures an acquired asset at fair value. What is the role of IFRS 13?","es":""},"explanation":{"fr":"","en":"IFRS 13 defines fair value as the price that would be received to sell an asset in an orderly transaction between market participants (IFRS 13, para. 9) and provides the measurement framework, including highest and best use (para. 31). The combination standard decides which items are measured at fair value, subject to its exceptions.","es":""},"common_error":{"fr":"","en":"Applying IFRS 13 to the measurement exceptions specific to IFRS 3 without distinction.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"To decide which acquired assets are recognised, as well as the measurement exceptions of the combination.","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 13 does not decide which acquired assets are recognised or the measurement exceptions of the combination: those matters belong to the combination standard (IFRS 13, para. 9). Rule to remember: IFRS 13 gives the definition and the framework, the combination standard decides the rest (para. 9).","es":""}},{"id":"B","text":{"fr":"","en":"To set fair value at the price paid by the acquirer, which is the entry price.","es":""},"correct":false,"feedback":{"fr":"","en":"Fair value is an exit price, not the entry price paid by the acquirer: it is the price that would be received to sell an asset in an orderly transaction between market participants (IFRS 13, para. 9). Rule to remember: fair value = exit price (para. 9).","es":""}},{"id":"C","text":{"fr":"","en":"To replace the combination standard for all acquired items, with no exception.","es":""},"correct":false,"feedback":{"fr":"","en":"IFRS 13 does not replace the combination standard: it provides the definition and the method of fair value, whereas the combination standard decides the items concerned and may provide exceptions (IFRS 13, para. 9). Rule to remember: applying IFRS 13 without distinguishing the combination's exceptions is an error (para. 9).","es":""}},{"id":"D","text":{"fr":"","en":"Provide the definition (exit price) and the framework; the combination standard decides the rest.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000192","standard_id":"IFRS13","concept_ids":["IFRS13.SCOPE.APPLICABILITY"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000192","tested_point":"QST.IFRS13.000192","difficulty":"BEGINNER","source":"V1","format":"TRUE_FALSE","estimated_time_s":45,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000001","section_id":"rule-applicability"},"references":["IFRS 13 §4"],"exercise":{"prompt":{"fr":"","en":"Since the definition of fair value focuses on assets and liabilities, IFRS 13 never applies to the entity's own equity instruments.","es":""},"explanation":{"fr":"","en":"The definition of fair value focuses on assets and liabilities, the primary subject of accounting measurement; IFRS 13 also applies to the entity's own equity instruments measured at fair value (IFRS 13, para. 4). Trap: reading the definition as a limit on the scope. Rule to remember: assets, liabilities and the entity's own equity instruments measured at fair value fall within IFRS 13.","es":""},"common_error":{"fr":"","en":"Excluding from IFRS 13 the entity's own equity instruments measured at fair value.","es":""},"format":"TRUE_FALSE","answer":false},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000193","standard_id":"IFRS13","concept_ids":["IFRS13.DEFINITION.ASSET_LIABILITY_CHARACTERISTICS"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000193","tested_point":"QST.IFRS13.000193","difficulty":"INTERMEDIATE","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":75,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000002","section_id":"rule-intent"},"references":["IFRS 13 §10","IFRS 13 §B2"],"exercise":{"prompt":{"fr":"","en":"To prepare the fair value measurement of a warehouse, an analyst looks for the overall approach to which IFRS 13 refers. What does this approach cover?","es":""},"explanation":{"fr":"","en":"IFRS 13 refers, in para. 10, to para. B2 for the overall measurement approach: determine the item measured according to its unit of account, for a non-financial asset the valuation premise according to its highest and best use, the principal or, failing that, the most advantageous market, and the appropriate techniques given the available data and their level in the hierarchy (IFRS 13, paras. 10 and B2). Trap: starting from the entity's intentions or from a historical price. Rule to remember: item measured, valuation premise, market, techniques.","es":""},"common_error":{"fr":"","en":"Starting the measurement from the entity's intentions rather than from the item measured and its market.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The item measured, the valuation premise based on highest and best use, the principal or most advantageous market, then techniques suited to the data.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"The use the entity intends for the warehouse, then the discounting of the cash flows it expects from it under its own management assumptions.","es":""},"correct":false,"feedback":{"fr":"","en":"The approach rests on the item measured, the market and the techniques in light of the available data, not on the entity's intended use or its own assumptions (IFRS 13, para. B2).","es":""}},{"id":"C","text":{"fr":"","en":"Only the quoted price of the warehouse; without a quoted price, the fair value measurement cannot be performed.","es":""},"correct":false,"feedback":{"fr":"","en":"The absence of a quoted price does not prevent measurement: the approach provides for choosing appropriate techniques given the available data (IFRS 13, para. B2).","es":""}},{"id":"D","text":{"fr":"","en":"The price paid on acquisition of the warehouse, adjusted for the inflation observed since that date.","es":""},"correct":false,"feedback":{"fr":"","en":"An indexed historical price is not a step of the approach, which starts from the item measured and the market at the measurement date (IFRS 13, para. B2).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000194","standard_id":"IFRS13","concept_ids":["IFRS13.MARKET.PRINCIPAL_MARKET","IFRS13.MARKET.MOST_ADVANTAGEOUS_MARKET"],"dimension":"RULE_KNOWLEDGE","context":"V1_QST.IFRS13.000194","tested_point":"QST.IFRS13.000194","difficulty":"INTERMEDIATE","source":"V1","format":"MULTIPLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000004","section_id":"rule-markets"},"references":["IFRS 13 §15","IFRS 13 §20","IFRS 13 §21"],"exercise":{"prompt":{"fr":"","en":"Which statements about the transaction assumed by a fair value measurement are correct? (Several answers.)","es":""},"explanation":{"fr":"","en":"A fair value measurement assumes an exchange in an orderly transaction between market participants, at the measurement date and under current market conditions (IFRS 13, para. 15). The entity must be able to access the market, without having to be able to sell the asset or transfer the liability at that date (IFRS 13, para. 20). Even without an observable market providing a price, a transaction is assumed at the measurement date, from the perspective of a market participant that holds the asset or owes the liability; it is the basis for estimating the price (IFRS 13, para. 21). Trap: equating fair value with a forced sale price or giving up for lack of an observable market. Rule to remember: orderly, hypothetical transaction, at the measurement date, in an accessible market.","es":""},"common_error":{"fr":"","en":"Giving up on fair value for lack of an observable market at the measurement date.","es":""},"format":"MULTIPLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The measurement assumes a forced sale, on the terms the entity would obtain if it had to dispose of the asset urgently.","es":""},"correct":false,"feedback":{"fr":"","en":"The assumed transaction is orderly, not forced (IFRS 13, para. 15).","es":""}},{"id":"B","text":{"fr":"","en":"The entity must be able to access the market, but need not be able to sell the asset at the measurement date to use the price in that market.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"The measurement assumes an exchange in an orderly transaction between market participants, at the measurement date and under current market conditions.","es":""},"correct":true},{"id":"D","text":{"fr":"","en":"Without an observable market providing a price at the measurement date, no transaction is assumed and the asset remains measured at cost.","es":""},"correct":false,"feedback":{"fr":"","en":"Even without an observable market, a hypothetical transaction is assumed at the measurement date and is the basis for the estimate (IFRS 13, para. 21).","es":""}},{"id":"E","text":{"fr":"","en":"Even without an observable market, the measurement assumes a transaction at the measurement date, from the perspective of a market participant that holds the asset or owes the liability.","es":""},"correct":true}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000195","standard_id":"IFRS13","concept_ids":["IFRS13.TECHNIQUES.CHANGE_OF_TECHNIQUE"],"dimension":"APPLICATION","context":"V1_QST.IFRS13.000195","tested_point":"QST.IFRS13.000195","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":100,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000009","section_id":"rule-select"},"references":["IFRS 13 §66","IFRS 13 §65"],"exercise":{"prompt":{"fr":"","en":"Halvane measured a portfolio of unquoted shares using a given valuation technique. Case data: new market information arising in the year makes another technique more representative of fair value, and Halvane changes to it. How is the resulting revision of fair value treated?","es":""},"explanation":{"fr":"","en":"A change in valuation technique is appropriate if it results in a measurement that is equally or more representative of fair value (IFRS 13, para. 65); here, the better representativeness of the new technique is case data. The resulting revision is accounted for as a change in accounting estimate under IAS 8, but the disclosures IAS 8 requires for a change in estimate are not required (IFRS 13, para. 66). Trap: treating the change in technique as a change in policy or an error correction. Rule to remember: change in technique, change in estimate under IAS 8, without the IAS 8 disclosures.","es":""},"common_error":{"fr":"","en":"Restating comparatives after a change in valuation technique.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"As a change in accounting policy under IAS 8, applied retrospectively with restatement of comparatives.","es":""},"correct":false,"feedback":{"fr":"","en":"The revision is not a change in accounting policy: it is treated as a change in estimate under IAS 8 (IFRS 13, para. 66).","es":""}},{"id":"B","text":{"fr":"","en":"As a change in accounting estimate under IAS 8, without the disclosures IAS 8 requires for such a change.","es":""},"correct":true},{"id":"C","text":{"fr":"","en":"As a change in accounting estimate under IAS 8, with all the disclosures IAS 8 requires for such a change.","es":""},"correct":false,"feedback":{"fr":"","en":"The classification is right, but IFRS 13 waives the disclosures IAS 8 requires for a change in estimate (IFRS 13, para. 66).","es":""}},{"id":"D","text":{"fr":"","en":"As the correction of a prior period error, the previous technique having become unsuitable.","es":""},"correct":false,"feedback":{"fr":"","en":"There is no error: an appropriate change in technique leads to a revision treated as a change in estimate (IFRS 13, paras. 65 and 66).","es":""}}]},"scope":"CORE_STUDENT"},{"key":"QST.IFRS13.000196","standard_id":"IFRS13","concept_ids":["IFRS13.HIERARCHY.LEVEL_3"],"dimension":"ANALYSIS","context":"V1_QST.IFRS13.000196","tested_point":"QST.IFRS13.000196","difficulty":"ADVANCED","source":"V1","format":"SINGLE_CHOICE","estimated_time_s":110,"lesson_id":null,"review":{"standard_id":"IFRS13","lesson_id":"LS.IFRS13.000011","section_id":"rule-levels"},"references":["IFRS 13 §87","IFRS 13 §86"],"exercise":{"prompt":{"fr":"","en":"For units in an unquoted fund, with no observable transaction, Ivrelle writes in its note: « Lacking an active market, our objective is no longer an exit price: we use the value the units have for us, without a risk premium, as we do not intend to sell them. » What is the error?","es":""},"explanation":{"fr":"","en":"Level 3 inputs are unobservable inputs (IFRS 13, para. 86). They are used to the extent that relevant observable inputs are not available, for example when there is little or no activity; the objective remains an exit price from the perspective of a market participant that holds the asset, so these inputs reflect the assumptions of market participants, including about risk (IFRS 13, para. 87). Trap: moving from an exit price to an entity-specific value for lack of an active market. Rule to remember: at Level 3 too, exit price and market participant assumptions, risk included.","es":""},"common_error":{"fr":"","en":"Replacing the exit price with an entity-specific value when observable inputs are lacking.","es":""},"format":"SINGLE_CHOICE","options":[{"id":"A","text":{"fr":"","en":"The objective remains an exit price for a market participant; unobservable inputs reflect its assumptions, including about risk.","es":""},"correct":true},{"id":"B","text":{"fr":"","en":"There is no error: without observable inputs, the entity uses its own assumptions, as they are and without testing them against the market.","es":""},"correct":false,"feedback":{"fr":"","en":"Unobservable inputs must reflect market participant assumptions, including about risk, not the entity's view alone (IFRS 13, para. 87).","es":""}},{"id":"C","text":{"fr":"","en":"The error is to measure the units at fair value: without an active market, they must remain measured at their acquisition cost.","es":""},"correct":false,"feedback":{"fr":"","en":"The absence of an active market does not prevent measurement: unobservable inputs are then used (IFRS 13, paras. 86 and 87).","es":""}},{"id":"D","text":{"fr":"","en":"The error concerns only the risk premium; using the value of the units to the entity remains acceptable at Level 3.","es":""},"correct":false,"feedback":{"fr":"","en":"Both points are wrong: the objective remains an exit price for a market participant, not an entity-specific value (IFRS 13, para. 87).","es":""}}]},"scope":"CORE_STUDENT"}],"reviewTitles":{"LX.IFRS13.000001":"Fair value under IFRS 13: purpose, scope, exclusions and exemptions — The rule: purpose of the standard and nature of fair value","LX.IFRS13.000002":"Fair value under IFRS 13: purpose, scope, exclusions and exemptions — The rule: purpose of the standard and nature of fair value","LX.IFRS13.000003":"Fair value under IFRS 13: purpose, scope, exclusions and exemptions — The rule: when IFRS 13 applies","LX.IFRS13.000004":"Fair value under IFRS 13: purpose, scope, exclusions and exemptions — The rule: when IFRS 13 applies","LX.IFRS13.000005":"Fair value under IFRS 13: purpose, scope, exclusions and exemptions — Exclusions and disclosure exemptions","LX.IFRS13.000006":"Fair value under IFRS 13: purpose, scope, exclusions and exemptions — Exclusions and disclosure exemptions","LX.IFRS13.000007":"Fair value under IFRS 13: purpose, scope, exclusions and exemptions — Exclusions and disclosure exemptions","LX.IFRS13.000008":"Fair value under IFRS 13: purpose, scope, exclusions and exemptions — Professional judgment: qualifying a measure","LX.IFRS13.000009":"Fair value under IFRS 13: purpose, scope, exclusions and exemptions — The rule: purpose of the standard and nature of fair value","LX.IFRS13.000010":"The definition: exit price, market participants, characteristics — Understand: entry price, exit price","LX.IFRS13.000011":"The definition: exit price, market participants, characteristics — The rule: the definition of fair value","LX.IFRS13.000012":"The definition: exit price, market participants, characteristics — The rule: market participants","LX.IFRS13.000013":"The definition: exit price, market participants, characteristics — The rule: the entity's intention and the item's characteristics","LX.IFRS13.000014":"The definition: exit price, market participants, characteristics — The rule: the entity's intention and the item's characteristics","LX.IFRS13.000015":"The definition: exit price, market participants, characteristics — How to apply it","LX.IFRS13.000016":"The definition: exit price, market participants, characteristics — The rule: market participants","LX.IFRS13.000017":"The definition: exit price, market participants, characteristics — Professional judgment: describing the participants","LX.IFRS13.000018":"The definition: exit price, market participants, characteristics — Professional judgment: describing the participants","LX.IFRS13.000019":"The unit of account: what exactly is being measured? — The rule: the unit comes from the applicable standard","LX.IFRS13.000020":"The unit of account: what exactly is being measured? — The rule: the unit comes from the applicable standard","LX.IFRS13.000021":"The unit of account: what exactly is being measured? — The rule: the unit comes from the applicable standard","LX.IFRS13.000022":"The unit of account: what exactly is being measured? — Numeric example: item by item or as a group","LX.IFRS13.000023":"The unit of account: what exactly is being measured? — Numeric example: item by item or as a group","LX.IFRS13.000024":"The unit of account: what exactly is being measured? — Points of attention","LX.IFRS13.000025":"The unit of account: what exactly is being measured? — The rule: the unit comes from the applicable standard","LX.IFRS13.000026":"The unit of account: what exactly is being measured? — Professional judgment: documenting the unit","LX.IFRS13.000027":"Which market? Principal market, most advantageous market, transaction and transport costs — The rule: principal market and most advantageous market","LX.IFRS13.000028":"Which market? Principal market, most advantageous market, transaction and transport costs — The rule: principal market and most advantageous market","LX.IFRS13.000029":"Which market? Principal market, most advantageous market, transaction and transport costs — The rule: principal market and most advantageous market","LX.IFRS13.000030":"Which market? Principal market, most advantageous market, transaction and transport costs — The rule: principal market and most advantageous market","LX.IFRS13.000031":"Which market? Principal market, most advantageous market, transaction and transport costs — Numeric example: two markets, three amounts","LX.IFRS13.000032":"Which market? Principal market, most advantageous market, transaction and transport costs — The rule: transaction costs and transport costs","LX.IFRS13.000033":"Which market? Principal market, most advantageous market, transaction and transport costs — Numeric example: two markets, three amounts","LX.IFRS13.000034":"Which market? Principal market, most advantageous market, transaction and transport costs — Numeric example: two markets, three amounts","LX.IFRS13.000035":"Which market? Principal market, most advantageous market, transaction and transport costs — Points of attention","LX.IFRS13.000036":"Which market? Principal market, most advantageous market, transaction and transport costs — Professional judgment: documenting the market choice","LX.IFRS13.000037":"Which market? Principal market, most advantageous market, transaction and transport costs — The rule: transaction costs and transport costs","LX.IFRS13.000038":"Which market? Principal market, most advantageous market, transaction and transport costs — How to apply it","LX.IFRS13.000039":"Non-financial assets: highest and best use and valuation premise — The rule: highest and best use","LX.IFRS13.000040":"Non-financial assets: highest and best use and valuation premise — The rule: highest and best use","LX.IFRS13.000041":"Non-financial assets: highest and best use and valuation premise — Numeric example: comparing the uses of a plot","LX.IFRS13.000042":"Non-financial assets: highest and best use and valuation premise — Numeric example: comparing the uses of a plot","LX.IFRS13.000043":"Non-financial assets: highest and best use and valuation premise — Professional judgment: defensive use and grey areas","LX.IFRS13.000044":"Non-financial assets: highest and best use and valuation premise — The rule: combined or stand-alone use","LX.IFRS13.000045":"Non-financial assets: highest and best use and valuation premise — The rule: combined or stand-alone use","LX.IFRS13.000046":"Non-financial assets: highest and best use and valuation premise — Points of attention","LX.IFRS13.000047":"Non-financial assets: highest and best use and valuation premise — Professional judgment: defensive use and grey areas","LX.IFRS13.000048":"Non-financial assets: highest and best use and valuation premise — The rule: combined or stand-alone use","LX.IFRS13.000049":"Measuring a liability: transfer, non-performance risk, restrictions and demand liabilities — The rule: the transfer assumption","LX.IFRS13.000050":"Measuring a liability: transfer, non-performance risk, restrictions and demand liabilities — The rule: the transfer assumption","LX.IFRS13.000051":"Measuring a liability: transfer, non-performance risk, restrictions and demand liabilities — The rule: three situations depending on available information","LX.IFRS13.000052":"Measuring a liability: transfer, non-performance risk, restrictions and demand liabilities — The rule: three situations depending on available information","LX.IFRS13.000053":"Measuring a liability: transfer, non-performance risk, restrictions and demand liabilities — Numeric examples: margin, credit risk, demand liability","LX.IFRS13.000054":"Measuring a liability: transfer, non-performance risk, restrictions and demand liabilities — Numeric examples: margin, credit risk, demand liability","LX.IFRS13.000055":"Measuring a liability: transfer, non-performance risk, restrictions and demand liabilities — The rule: non-performance risk, restrictions and demand liabilities","LX.IFRS13.000056":"Measuring a liability: transfer, non-performance risk, restrictions and demand liabilities — The rule: non-performance risk, restrictions and demand liabilities","LX.IFRS13.000057":"Measuring a liability: transfer, non-performance risk, restrictions and demand liabilities — Numeric examples: margin, credit risk, demand liability","LX.IFRS13.000058":"Measuring a liability: transfer, non-performance risk, restrictions and demand liabilities — The rule: non-performance risk, restrictions and demand liabilities","LX.IFRS13.000059":"Measuring a liability: transfer, non-performance risk, restrictions and demand liabilities — Professional judgment: rate, margin and own credit","LX.IFRS13.000060":"Measuring a liability: transfer, non-performance risk, restrictions and demand liabilities — The rule: the transfer assumption","LX.IFRS13.000061":"The portfolio exception: measuring on a net exposure basis — Understand: a net position is managed, so it is measured net","LX.IFRS13.000062":"The portfolio exception: measuring on a net exposure basis — The rule: conditions, nature and scope of the exception","LX.IFRS13.000063":"The portfolio exception: measuring on a net exposure basis — The rule: conditions, nature and scope of the exception","LX.IFRS13.000064":"The portfolio exception: measuring on a net exposure basis — The rule: conditions, nature and scope of the exception","LX.IFRS13.000065":"The portfolio exception: measuring on a net exposure basis — The rule: conditions, nature and scope of the exception","LX.IFRS13.000066":"The portfolio exception: measuring on a net exposure basis — Numeric example: net position versus contract-by-contract measurement","LX.IFRS13.000067":"The portfolio exception: measuring on a net exposure basis — The rule: measuring the net position","LX.IFRS13.000068":"The portfolio exception: measuring on a net exposure basis — The rule: measuring the net position","LX.IFRS13.000069":"The portfolio exception: measuring on a net exposure basis — Professional judgment: demonstrating net management","LX.IFRS13.000070":"At initial recognition: transaction price, fair value and day-one difference — The rule: transaction price and fair value","LX.IFRS13.000071":"At initial recognition: transaction price, fair value and day-one difference — The rule: transaction price and fair value","LX.IFRS13.000072":"At initial recognition: transaction price, fair value and day-one difference — The rule: the day-one difference","LX.IFRS13.000073":"At initial recognition: transaction price, fair value and day-one difference — Numeric example: calculating the difference","LX.IFRS13.000074":"At initial recognition: transaction price, fair value and day-one difference — The rule: the day-one difference","LX.IFRS13.000075":"At initial recognition: transaction price, fair value and day-one difference — Points of attention","LX.IFRS13.000076":"At initial recognition: transaction price, fair value and day-one difference — Professional judgment: judging the transaction price","LX.IFRS13.000077":"At initial recognition: transaction price, fair value and day-one difference — The rule: the day-one difference","LX.IFRS13.000078":"Valuation techniques: approaches, selection, weighting, calibration and present value — The rule: the three approaches","LX.IFRS13.000079":"Valuation techniques: approaches, selection, weighting, calibration and present value — Understand: fair value without a quoted price","LX.IFRS13.000080":"Valuation techniques: approaches, selection, weighting, calibration and present value — The rule: choosing, weighting, staying consistent","LX.IFRS13.000081":"Valuation techniques: approaches, selection, weighting, calibration and present value — Numeric examples: weighting, calibration, present value","LX.IFRS13.000082":"Valuation techniques: approaches, selection, weighting, calibration and present value — Professional judgment: choice, weights and change","LX.IFRS13.000083":"Valuation techniques: approaches, selection, weighting, calibration and present value — Numeric examples: weighting, calibration, present value","LX.IFRS13.000084":"Valuation techniques: approaches, selection, weighting, calibration and present value — The rule: choosing, weighting, staying consistent","LX.IFRS13.000085":"Valuation techniques: approaches, selection, weighting, calibration and present value — Numeric examples: weighting, calibration, present value","LX.IFRS13.000086":"Valuation techniques: approaches, selection, weighting, calibration and present value — Numeric examples: weighting, calibration, present value","LX.IFRS13.000087":"Valuation techniques: approaches, selection, weighting, calibration and present value — The rule: present value techniques","LX.IFRS13.000088":"Valuation techniques: approaches, selection, weighting, calibration and present value — Professional judgment: choice, weights and change","LX.IFRS13.000089":"Valuation techniques: approaches, selection, weighting, calibration and present value — The rule: the three approaches","LX.IFRS13.000090":"Inputs: observable or not, premiums and discounts, bid and ask prices — The rule: observable and unobservable inputs","LX.IFRS13.000091":"Inputs: observable or not, premiums and discounts, bid and ask prices — The rule: observable and unobservable inputs","LX.IFRS13.000092":"Inputs: observable or not, premiums and discounts, bid and ask prices — Understand: what feeds a valuation technique?","LX.IFRS13.000093":"Inputs: observable or not, premiums and discounts, bid and ask prices — The rule: premiums, discounts and position size","LX.IFRS13.000094":"Inputs: observable or not, premiums and discounts, bid and ask prices — Numeric example: bid-ask range and position size","LX.IFRS13.000095":"Inputs: observable or not, premiums and discounts, bid and ask prices — The rule: bid and ask prices","LX.IFRS13.000096":"Inputs: observable or not, premiums and discounts, bid and ask prices — The rule: premiums, discounts and position size","LX.IFRS13.000097":"Inputs: observable or not, premiums and discounts, bid and ask prices — Professional judgment: qualifying an input and a premium","LX.IFRS13.000098":"The fair value hierarchy: Levels 1, 2 and 3 — The rule: the three levels","LX.IFRS13.000099":"The fair value hierarchy: Levels 1, 2 and 3 — The rule: the three levels","LX.IFRS13.000100":"The fair value hierarchy: Levels 1, 2 and 3 — The rule: classify by the lowest-level significant input","LX.IFRS13.000101":"The fair value hierarchy: Levels 1, 2 and 3 — Numeric example: a quoted position, no blockage discount","LX.IFRS13.000102":"The fair value hierarchy: Levels 1, 2 and 3 — The rule: Level 1 adjustments and the position held","LX.IFRS13.000103":"The fair value hierarchy: Levels 1, 2 and 3 — The rule: Levels 2 and 3 in detail, transfers","LX.IFRS13.000104":"The fair value hierarchy: Levels 1, 2 and 3 — The rule: Levels 2 and 3 in detail, transfers","LX.IFRS13.000105":"The fair value hierarchy: Levels 1, 2 and 3 — The rule: Levels 2 and 3 in detail, transfers","LX.IFRS13.000106":"The fair value hierarchy: Levels 1, 2 and 3 — Professional judgment: 'significant' or not?","LX.IFRS13.000107":"The fair value hierarchy: Levels 1, 2 and 3 — Professional judgment: 'significant' or not?","LX.IFRS13.000108":"Markets that freeze: decreased activity and non-orderly transactions — The rule: significant decrease in volume or level of activity","LX.IFRS13.000109":"Markets that freeze: decreased activity and non-orderly transactions — The rule: significant decrease in volume or level of activity","LX.IFRS13.000110":"Markets that freeze: decreased activity and non-orderly transactions — The rule: significant decrease in volume or level of activity","LX.IFRS13.000111":"Markets that freeze: decreased activity and non-orderly transactions — The rule: non-orderly transactions","LX.IFRS13.000112":"Markets that freeze: decreased activity and non-orderly transactions — Numeric example: weighting two indications","LX.IFRS13.000113":"Markets that freeze: decreased activity and non-orderly transactions — Points of attention","LX.IFRS13.000114":"Markets that freeze: decreased activity and non-orderly transactions — Professional judgment: concluding on a decrease in activity","LX.IFRS13.000115":"Disclosures: objectives, categories, Level 3 and special cases — Understand: giving the reader enough to judge","LX.IFRS13.000116":"Disclosures: objectives, categories, Level 3 and special cases — The rule: content by category","LX.IFRS13.000117":"Disclosures: objectives, categories, Level 3 and special cases — Numeric example: table by level and Level 3 reconciliation","LX.IFRS13.000118":"Disclosures: objectives, categories, Level 3 and special cases — Numeric example: table by level and Level 3 reconciliation","LX.IFRS13.000119":"Disclosures: objectives, categories, Level 3 and special cases — The rule: content by category","LX.IFRS13.000120":"Disclosures: objectives, categories, Level 3 and special cases — The rule: items not measured at fair value and credit enhancement","LX.IFRS13.000121":"Disclosures: objectives, categories, Level 3 and special cases — The rule: content by category","LX.IFRS13.000122":"Disclosures: objectives, categories, Level 3 and special cases — The rule: items not measured at fair value and credit enhancement","LX.IFRS13.000123":"Disclosures: objectives, categories, Level 3 and special cases — The rule: Level 3 in detail","LX.IFRS13.000124":"Disclosures: objectives, categories, Level 3 and special cases — Points of attention","LX.IFRS13.000125":"Disclosures: objectives, categories, Level 3 and special cases — Professional judgment: categories, aggregation, sensitivity","LX.IFRS13.000126":"Disclosures: objectives, categories, Level 3 and special cases — Professional judgment: categories, aggregation, sensitivity","LX.IFRS13.000127":"Effective date and transition — The rule: date, early application and transition","LX.IFRS13.000128":"Effective date and transition — The rule: date, early application and transition","LX.IFRS13.000129":"Effective date and transition — The rule: date, early application and transition","LX.IFRS13.000132":"Effective date and transition — Example: an entity with a 31 December year end","LX.IFRS13.000133":"At the boundaries: IAS 16, IAS 38, IAS 36, IFRS 9 and IFRS 3 — Understand: IFRS 13 is a tool, not a choice","LX.IFRS13.000134":"At the boundaries: IAS 16, IAS 38, IAS 36, IFRS 9 and IFRS 3 — Numeric examples: revaluation, costs of disposal, discounting","LX.IFRS13.000135":"At the boundaries: IAS 16, IAS 38, IAS 36, IFRS 9 and IFRS 3 — Journal entry: recording the revaluation","LX.IFRS13.000136":"At the boundaries: IAS 16, IAS 38, IAS 36, IFRS 9 and IFRS 3 — The rule: IAS 16 and IAS 38","LX.IFRS13.000137":"At the boundaries: IAS 16, IAS 38, IAS 36, IFRS 9 and IFRS 3 — The rule: IAS 16 and IAS 38","LX.IFRS13.000138":"At the boundaries: IAS 16, IAS 38, IAS 36, IFRS 9 and IFRS 3 — Numeric examples: revaluation, costs of disposal, discounting","LX.IFRS13.000139":"At the boundaries: IAS 16, IAS 38, IAS 36, IFRS 9 and IFRS 3 — The rule: IAS 36, IFRS 9 and IFRS 3","LX.IFRS13.000140":"At the boundaries: IAS 16, IAS 38, IAS 36, IFRS 9 and IFRS 3 — Numeric examples: revaluation, costs of disposal, discounting","LX.IFRS13.000141":"At the boundaries: IAS 16, IAS 38, IAS 36, IFRS 9 and IFRS 3 — The rule: IAS 36, IFRS 9 and IFRS 3","LX.IFRS13.000142":"At the boundaries: IAS 16, IAS 38, IAS 36, IFRS 9 and IFRS 3 — The rule: IAS 36, IFRS 9 and IFRS 3","LX.IFRS13.000143":"At the boundaries: IAS 16, IAS 38, IAS 36, IFRS 9 and IFRS 3 — Professional judgment: reading two standards together","QST.IFRS13.000001":"Fair value under IFRS 13: purpose, scope, exclusions and exemptions — The rule: purpose of the standard and nature of fair value","QST.IFRS13.000002":"Fair value under IFRS 13: purpose, scope, exclusions and exemptions — The rule: purpose of the standard and nature of fair value","QST.IFRS13.000003":"Fair value under IFRS 13: purpose, scope, exclusions and exemptions — The rule: purpose of the standard and nature of fair value","QST.IFRS13.000004":"Fair value under IFRS 13: purpose, scope, exclusions and exemptions — The rule: purpose of the standard and nature of fair value","QST.IFRS13.000005":"Fair value under IFRS 13: purpose, scope, exclusions and exemptions — The rule: when IFRS 13 applies","QST.IFRS13.000006":"Fair value under IFRS 13: purpose, scope, exclusions and exemptions — The rule: when IFRS 13 applies","QST.IFRS13.000007":"Fair value under IFRS 13: purpose, scope, exclusions and exemptions — The rule: when IFRS 13 applies","QST.IFRS13.000008":"Fair value under IFRS 13: purpose, scope, exclusions and exemptions — The rule: when IFRS 13 applies","QST.IFRS13.000009":"Fair value under IFRS 13: purpose, scope, exclusions and exemptions — Exclusions and disclosure exemptions","QST.IFRS13.000010":"Fair value under IFRS 13: purpose, scope, exclusions and exemptions — Exclusions and disclosure exemptions","QST.IFRS13.000011":"Fair value under IFRS 13: purpose, scope, exclusions and exemptions — Exclusions and disclosure exemptions","QST.IFRS13.000012":"Fair value under IFRS 13: purpose, scope, exclusions and exemptions — Exclusions and disclosure exemptions","QST.IFRS13.000013":"Fair value under IFRS 13: purpose, scope, exclusions and exemptions — Exclusions and disclosure exemptions","QST.IFRS13.000014":"Fair value under IFRS 13: purpose, scope, exclusions and exemptions — Exclusions and disclosure exemptions","QST.IFRS13.000015":"The definition: exit price, market participants, characteristics — The rule: the definition of fair value","QST.IFRS13.000016":"The definition: exit price, market participants, characteristics — The rule: the definition of fair value","QST.IFRS13.000017":"The definition: exit price, market participants, characteristics — The rule: the definition of fair value","QST.IFRS13.000018":"Fair value under IFRS 13: purpose, scope, exclusions and exemptions — The rule: purpose of the standard and nature of fair value","QST.IFRS13.000019":"The definition: exit price, market participants, characteristics — The rule: market participants","QST.IFRS13.000020":"The definition: exit price, market participants, characteristics — The rule: market participants","QST.IFRS13.000021":"The definition: exit price, market participants, characteristics — The rule: market participants","QST.IFRS13.000023":"The definition: exit price, market participants, characteristics — The rule: the entity's intention and the item's characteristics","QST.IFRS13.000024":"The definition: exit price, market participants, characteristics — The rule: the definition of fair value","QST.IFRS13.000025":"The definition: exit price, market participants, characteristics — The rule: the entity's intention and the item's characteristics","QST.IFRS13.000026":"The definition: exit price, market participants, characteristics — The rule: the entity's intention and the item's characteristics","QST.IFRS13.000027":"The unit of account: what exactly is being measured? — The rule: the unit comes from the applicable standard","QST.IFRS13.000028":"The unit of account: what exactly is being measured? — The rule: the unit comes from the applicable standard","QST.IFRS13.000029":"The unit of account: what exactly is being measured? — The rule: the unit comes from the applicable standard","QST.IFRS13.000030":"The unit of account: what exactly is being measured? — The rule: the unit comes from the applicable standard","QST.IFRS13.000031":"Which market? Principal market, most advantageous market, transaction and transport costs — The rule: principal market and most advantageous market","QST.IFRS13.000032":"Which market? Principal market, most advantageous market, transaction and transport costs — The rule: principal market and most advantageous market","QST.IFRS13.000033":"Which market? Principal market, most advantageous market, transaction and transport costs — The rule: principal market and most advantageous market","QST.IFRS13.000034":"Which market? Principal market, most advantageous market, transaction and transport costs — The rule: principal market and most advantageous market","QST.IFRS13.000035":"Which market? Principal market, most advantageous market, transaction and transport costs — The rule: principal market and most advantageous market","QST.IFRS13.000036":"Which market? Principal market, most advantageous market, transaction and transport costs — The rule: principal market and most advantageous market","QST.IFRS13.000037":"Which market? Principal market, most advantageous market, transaction and transport costs — The rule: principal market and most advantageous market","QST.IFRS13.000038":"Which market? Principal market, most advantageous market, transaction and transport costs — The rule: principal market and most advantageous market","QST.IFRS13.000039":"Which market? Principal market, most advantageous market, transaction and transport costs — The rule: principal market and most advantageous market","QST.IFRS13.000040":"Which market? Principal market, most advantageous market, transaction and transport costs — The rule: transaction costs and transport costs","QST.IFRS13.000041":"Which market? Principal market, most advantageous market, transaction and transport costs — The rule: transaction costs and transport costs","QST.IFRS13.000042":"The definition: exit price, market participants, characteristics — The rule: the definition of fair value","QST.IFRS13.000043":"The definition: exit price, market participants, characteristics — The rule: the definition of fair value","QST.IFRS13.000044":"Which market? Principal market, most advantageous market, transaction and transport costs — The rule: principal market and most advantageous market","QST.IFRS13.000045":"Which market? Principal market, most advantageous market, transaction and transport costs — The rule: transaction costs and transport costs","QST.IFRS13.000046":"Which market? Principal market, most advantageous market, transaction and transport costs — The rule: transaction costs and transport costs","QST.IFRS13.000047":"Which market? Principal market, most advantageous market, transaction and transport costs — The rule: transaction costs and transport costs","QST.IFRS13.000048":"Non-financial assets: highest and best use and valuation premise — The rule: highest and best use","QST.IFRS13.000050":"Non-financial assets: highest and best use and valuation premise — The rule: highest and best use","QST.IFRS13.000051":"Non-financial assets: highest and best use and valuation premise — The rule: highest and best use","QST.IFRS13.000053":"Non-financial assets: highest and best use and valuation premise — The rule: combined or stand-alone use","QST.IFRS13.000056":"Measuring a liability: transfer, non-performance risk, restrictions and demand liabilities — The rule: the transfer assumption","QST.IFRS13.000057":"Measuring a liability: transfer, non-performance risk, restrictions and demand liabilities — The rule: the transfer assumption","QST.IFRS13.000058":"Measuring a liability: transfer, non-performance risk, restrictions and demand liabilities — The rule: the transfer assumption","QST.IFRS13.000059":"Measuring a liability: transfer, non-performance risk, restrictions and demand liabilities — The rule: the transfer assumption","QST.IFRS13.000060":"Measuring a liability: transfer, non-performance risk, restrictions and demand liabilities — The rule: three situations depending on available information","QST.IFRS13.000061":"Measuring a liability: transfer, non-performance risk, restrictions and demand liabilities — The rule: three situations depending on available information","QST.IFRS13.000062":"Measuring a liability: transfer, non-performance risk, restrictions and demand liabilities — The rule: three situations depending on available information","QST.IFRS13.000063":"Measuring a liability: transfer, non-performance risk, restrictions and demand liabilities — The rule: three situations depending on available information","QST.IFRS13.000064":"Measuring a liability: transfer, non-performance risk, restrictions and demand liabilities — The rule: three situations depending on available information","QST.IFRS13.000065":"Measuring a liability: transfer, non-performance risk, restrictions and demand liabilities — The rule: non-performance risk, restrictions and demand liabilities","QST.IFRS13.000066":"Measuring a liability: transfer, non-performance risk, restrictions and demand liabilities — The rule: non-performance risk, restrictions and demand liabilities","QST.IFRS13.000067":"Measuring a liability: transfer, non-performance risk, restrictions and demand liabilities — The rule: non-performance risk, restrictions and demand liabilities","QST.IFRS13.000068":"Measuring a liability: transfer, non-performance risk, restrictions and demand liabilities — The rule: non-performance risk, restrictions and demand liabilities","QST.IFRS13.000070":"Measuring a liability: transfer, non-performance risk, restrictions and demand liabilities — The rule: non-performance risk, restrictions and demand liabilities","QST.IFRS13.000071":"Measuring a liability: transfer, non-performance risk, restrictions and demand liabilities — The rule: non-performance risk, restrictions and demand liabilities","QST.IFRS13.000072":"Measuring a liability: transfer, non-performance risk, restrictions and demand liabilities — The rule: non-performance risk, restrictions and demand liabilities","QST.IFRS13.000073":"Measuring a liability: transfer, non-performance risk, restrictions and demand liabilities — The rule: non-performance risk, restrictions and demand liabilities","QST.IFRS13.000074":"The portfolio exception: measuring on a net exposure basis — The rule: conditions, nature and scope of the exception","QST.IFRS13.000075":"The portfolio exception: measuring on a net exposure basis — The rule: conditions, nature and scope of the exception","QST.IFRS13.000076":"The portfolio exception: measuring on a net exposure basis — The rule: conditions, nature and scope of the exception","QST.IFRS13.000077":"The portfolio exception: measuring on a net exposure basis — The rule: conditions, nature and scope of the exception","QST.IFRS13.000078":"The portfolio exception: measuring on a net exposure basis — The rule: conditions, nature and scope of the exception","QST.IFRS13.000080":"The portfolio exception: measuring on a net exposure basis — The rule: conditions, nature and scope of the exception","QST.IFRS13.000081":"The portfolio exception: measuring on a net exposure basis — The rule: conditions, nature and scope of the exception","QST.IFRS13.000082":"The portfolio exception: measuring on a net exposure basis — The rule: measuring the net position","QST.IFRS13.000083":"The portfolio exception: measuring on a net exposure basis — The rule: measuring the net position","QST.IFRS13.000084":"The portfolio exception: measuring on a net exposure basis — The rule: measuring the net position","QST.IFRS13.000085":"The portfolio exception: measuring on a net exposure basis — The rule: measuring the net position","QST.IFRS13.000086":"At initial recognition: transaction price, fair value and day-one difference — The rule: transaction price and fair value","QST.IFRS13.000088":"At initial recognition: transaction price, fair value and day-one difference — The rule: transaction price and fair value","QST.IFRS13.000091":"At initial recognition: transaction price, fair value and day-one difference — The rule: the day-one difference","QST.IFRS13.000092":"At initial recognition: transaction price, fair value and day-one difference — The rule: transaction price and fair value","QST.IFRS13.000093":"At initial recognition: transaction price, fair value and day-one difference — The rule: transaction price and fair value","QST.IFRS13.000094":"At initial recognition: transaction price, fair value and day-one difference — The rule: the day-one difference","QST.IFRS13.000096":"At initial recognition: transaction price, fair value and day-one difference — The rule: transaction price and fair value","QST.IFRS13.000100":"Valuation techniques: approaches, selection, weighting, calibration and present value — The rule: the three approaches","QST.IFRS13.000101":"Valuation techniques: approaches, selection, weighting, calibration and present value — The rule: the three approaches","QST.IFRS13.000103":"Valuation techniques: approaches, selection, weighting, calibration and present value — The rule: the three approaches","QST.IFRS13.000104":"Valuation techniques: approaches, selection, weighting, calibration and present value — The rule: choosing, weighting, staying consistent","QST.IFRS13.000105":"Valuation techniques: approaches, selection, weighting, calibration and present value — The rule: choosing, weighting, staying consistent","QST.IFRS13.000106":"Valuation techniques: approaches, selection, weighting, calibration and present value — The rule: choosing, weighting, staying consistent","QST.IFRS13.000107":"Valuation techniques: approaches, selection, weighting, calibration and present value — The rule: choosing, weighting, staying consistent","QST.IFRS13.000108":"Valuation techniques: approaches, selection, weighting, calibration and present value — The rule: choosing, weighting, staying consistent","QST.IFRS13.000109":"Valuation techniques: approaches, selection, weighting, calibration and present value — The rule: calibration","QST.IFRS13.000110":"Valuation techniques: approaches, selection, weighting, calibration and present value — The rule: calibration","QST.IFRS13.000111":"Valuation techniques: approaches, selection, weighting, calibration and present value — The rule: calibration","QST.IFRS13.000112":"Valuation techniques: approaches, selection, weighting, calibration and present value — The rule: choosing, weighting, staying consistent","QST.IFRS13.000113":"Valuation techniques: approaches, selection, weighting, calibration and present value — The rule: choosing, weighting, staying consistent","QST.IFRS13.000114":"Valuation techniques: approaches, selection, weighting, calibration and present value — The rule: present value techniques","QST.IFRS13.000115":"Valuation techniques: approaches, selection, weighting, calibration and present value — The rule: present value techniques","QST.IFRS13.000116":"Valuation techniques: approaches, selection, weighting, calibration and present value — The rule: present value techniques","QST.IFRS13.000117":"Valuation techniques: approaches, selection, weighting, calibration and present value — The rule: present value techniques","QST.IFRS13.000118":"Valuation techniques: approaches, selection, weighting, calibration and present value — The rule: present value techniques","QST.IFRS13.000119":"Inputs: observable or not, premiums and discounts, bid and ask prices — The rule: observable and unobservable inputs","QST.IFRS13.000120":"Inputs: observable or not, premiums and discounts, bid and ask prices — The rule: observable and unobservable inputs","QST.IFRS13.000121":"Inputs: observable or not, premiums and discounts, bid and ask prices — The rule: observable and unobservable inputs","QST.IFRS13.000122":"Inputs: observable or not, premiums and discounts, bid and ask prices — The rule: observable and unobservable inputs","QST.IFRS13.000123":"Inputs: observable or not, premiums and discounts, bid and ask prices — The rule: premiums, discounts and position size","QST.IFRS13.000124":"Inputs: observable or not, premiums and discounts, bid and ask prices — The rule: premiums, discounts and position size","QST.IFRS13.000125":"Inputs: observable or not, premiums and discounts, bid and ask prices — The rule: premiums, discounts and position size","QST.IFRS13.000127":"Inputs: observable or not, premiums and discounts, bid and ask prices — The rule: bid and ask prices","QST.IFRS13.000128":"Inputs: observable or not, premiums and discounts, bid and ask prices — The rule: bid and ask prices","QST.IFRS13.000129":"Inputs: observable or not, premiums and discounts, bid and ask prices — The rule: bid and ask prices","QST.IFRS13.000130":"The fair value hierarchy: Levels 1, 2 and 3 — The rule: classify by the lowest-level significant input","QST.IFRS13.000132":"The fair value hierarchy: Levels 1, 2 and 3 — The rule: classify by the lowest-level significant input","QST.IFRS13.000133":"The fair value hierarchy: Levels 1, 2 and 3 — The rule: classify by the lowest-level significant input","QST.IFRS13.000134":"The fair value hierarchy: Levels 1, 2 and 3 — The rule: the three levels","QST.IFRS13.000135":"The fair value hierarchy: Levels 1, 2 and 3 — The rule: the three levels","QST.IFRS13.000136":"The fair value hierarchy: Levels 1, 2 and 3 — The rule: the three levels","QST.IFRS13.000137":"The fair value hierarchy: Levels 1, 2 and 3 — The rule: the three levels","QST.IFRS13.000138":"The fair value hierarchy: Levels 1, 2 and 3 — The rule: Level 1 adjustments and the position held","QST.IFRS13.000139":"The fair value hierarchy: Levels 1, 2 and 3 — The rule: Level 1 adjustments and the position held","QST.IFRS13.000140":"The fair value hierarchy: Levels 1, 2 and 3 — The rule: the three levels","QST.IFRS13.000144":"The fair value hierarchy: Levels 1, 2 and 3 — The rule: the three levels","QST.IFRS13.000146":"The fair value hierarchy: Levels 1, 2 and 3 — The rule: the three levels","QST.IFRS13.000148":"The fair value hierarchy: Levels 1, 2 and 3 — The rule: Levels 2 and 3 in detail, transfers","QST.IFRS13.000149":"The fair value hierarchy: Levels 1, 2 and 3 — The rule: Levels 2 and 3 in detail, transfers","QST.IFRS13.000153":"Markets that freeze: decreased activity and non-orderly transactions — The rule: non-orderly transactions","QST.IFRS13.000154":"Markets that freeze: decreased activity and non-orderly transactions — The rule: non-orderly transactions","QST.IFRS13.000156":"Disclosures: objectives, categories, Level 3 and special cases — The rule: objectives, detail and aggregation","QST.IFRS13.000157":"Disclosures: objectives, categories, Level 3 and special cases — The rule: objectives, detail and aggregation","QST.IFRS13.000158":"Disclosures: objectives, categories, Level 3 and special cases — The rule: objectives, detail and aggregation","QST.IFRS13.000159":"Disclosures: objectives, categories, Level 3 and special cases — The rule: objectives, detail and aggregation","QST.IFRS13.000160":"Disclosures: objectives, categories, Level 3 and special cases — The rule: objectives, detail and aggregation","QST.IFRS13.000161":"Disclosures: objectives, categories, Level 3 and special cases — The rule: objectives, detail and aggregation","QST.IFRS13.000162":"Disclosures: objectives, categories, Level 3 and special cases — The rule: content by category","QST.IFRS13.000163":"Disclosures: objectives, categories, Level 3 and special cases — The rule: content by category","QST.IFRS13.000164":"Disclosures: objectives, categories, Level 3 and special cases — The rule: content by category","QST.IFRS13.000165":"Disclosures: objectives, categories, Level 3 and special cases — The rule: content by category","QST.IFRS13.000166":"Disclosures: objectives, categories, Level 3 and special cases — The rule: Level 3 in detail","QST.IFRS13.000167":"Disclosures: objectives, categories, Level 3 and special cases — The rule: Level 3 in detail","QST.IFRS13.000168":"Disclosures: objectives, categories, Level 3 and special cases — The rule: Level 3 in detail","QST.IFRS13.000169":"Disclosures: objectives, categories, Level 3 and special cases — The rule: Level 3 in detail","QST.IFRS13.000170":"Disclosures: objectives, categories, Level 3 and special cases — The rule: Level 3 in detail","QST.IFRS13.000171":"Disclosures: objectives, categories, Level 3 and special cases — The rule: Level 3 in detail","QST.IFRS13.000172":"Disclosures: objectives, categories, Level 3 and special cases — The rule: Level 3 in detail","QST.IFRS13.000173":"Disclosures: objectives, categories, Level 3 and special cases — The rule: items not measured at fair value and credit enhancement","QST.IFRS13.000174":"Disclosures: objectives, categories, Level 3 and special cases — The rule: items not measured at fair value and credit enhancement","QST.IFRS13.000175":"Disclosures: objectives, categories, Level 3 and special cases — The rule: items not measured at fair value and credit enhancement","QST.IFRS13.000176":"Disclosures: objectives, categories, Level 3 and special cases — The rule: content by category","QST.IFRS13.000177":"Effective date and transition — The rule: date, early application and transition","QST.IFRS13.000178":"Effective date and transition — The rule: date, early application and transition","QST.IFRS13.000179":"At the boundaries: IAS 16, IAS 38, IAS 36, IFRS 9 and IFRS 3 — The rule: IAS 16 and IAS 38","QST.IFRS13.000180":"At the boundaries: IAS 16, IAS 38, IAS 36, IFRS 9 and IFRS 3 — The rule: IAS 16 and IAS 38","QST.IFRS13.000181":"At the boundaries: IAS 16, IAS 38, IAS 36, IFRS 9 and IFRS 3 — The rule: IAS 16 and IAS 38","QST.IFRS13.000182":"At the boundaries: IAS 16, IAS 38, IAS 36, IFRS 9 and IFRS 3 — The rule: IAS 16 and IAS 38","QST.IFRS13.000183":"At the boundaries: IAS 16, IAS 38, IAS 36, IFRS 9 and IFRS 3 — The rule: IAS 16 and IAS 38","QST.IFRS13.000184":"At the boundaries: IAS 16, IAS 38, IAS 36, IFRS 9 and IFRS 3 — The rule: IAS 36, IFRS 9 and IFRS 3","QST.IFRS13.000185":"Which market? Principal market, most advantageous market, transaction and transport costs — The rule: transaction costs and transport costs","QST.IFRS13.000186":"At the boundaries: IAS 16, IAS 38, IAS 36, IFRS 9 and IFRS 3 — The rule: IAS 36, IFRS 9 and IFRS 3","QST.IFRS13.000187":"At the boundaries: IAS 16, IAS 38, IAS 36, IFRS 9 and IFRS 3 — The rule: IAS 36, IFRS 9 and IFRS 3","QST.IFRS13.000188":"At the boundaries: IAS 16, IAS 38, IAS 36, IFRS 9 and IFRS 3 — The rule: IAS 36, IFRS 9 and IFRS 3","QST.IFRS13.000189":"At the boundaries: IAS 16, IAS 38, IAS 36, IFRS 9 and IFRS 3 — The rule: IAS 36, IFRS 9 and IFRS 3","QST.IFRS13.000190":"At the boundaries: IAS 16, IAS 38, IAS 36, IFRS 9 and IFRS 3 — The rule: IAS 36, IFRS 9 and IFRS 3","QST.IFRS13.000191":"At the boundaries: IAS 16, IAS 38, IAS 36, IFRS 9 and IFRS 3 — The rule: IAS 36, IFRS 9 and IFRS 3","QST.IFRS13.000192":"Fair value under IFRS 13: purpose, scope, exclusions and exemptions — The rule: when IFRS 13 applies","QST.IFRS13.000193":"The definition: exit price, market participants, characteristics — The rule: the entity's intention and the item's characteristics","QST.IFRS13.000194":"Which market? Principal market, most advantageous market, transaction and transport costs — The rule: principal market and most advantageous market","QST.IFRS13.000195":"Valuation techniques: approaches, selection, weighting, calibration and present value — The rule: choosing, weighting, staying consistent","QST.IFRS13.000196":"The fair value hierarchy: Levels 1, 2 and 3 — The rule: the three levels"}}