Current Value Accounting

Current Value Accounting and Its Influences on Accounting Environment Wei Cui Abstract Current Value Accounting is one of the hot spots of accounting researches. Three prevailing current value accounting methods are present value method, current entry price method and current exit price method. All these methods aim at adjusting the book value of assets and liabilities so that the information will not be distorted by the changing prices. The theoretical…

Pentium Accounting Research Questions Sami Mansour Walden University Current Trends in Accounting ACCT6140Standards May 17, 2015 Delineating Related Intel Pentium Accounting Research Questions Introduction The purpose of this paper is to define research questions (below) relating to "Accounting for the Intel Pentium Chip Flaw" (Hawkins, Miller & Narayanan, 2009). The questions are as follows; (A3.1) If you were an accountant for Intel, what specifically would be the relevant accounting research…

disadvantages of using Fair Value Accounting. Accounting valuation is a process by which the value of a company is measured in terms of their assets and liabilities for financial reporting purpose. Andriessen (2003) had been explained the valuation by using the Rescher’s Value Theory in his article. Rescher (1969) used the term of “evaluation” to describe valuation as ‘a comparative assessment or measurement of something with respect to its embodiment of a certain value.’ Valuation can be achieved…

Current Topics in Accounting: Relevant Issues CURRENT TOPICS IN ACCOUNTING: RELEVANT ISSUES 1A. DESCRIBE THE IMPACT THAT IMPLEMENTING FAS 157 HAD ON EMC'S FINANCIAL STATEMENTS, BASED ON THE FOOTNOTE INFORMATION PROVIDED. CAN YOU TELL IF THE CURRENT ECONOMIC CONDITIONS INFLUENCED THE VALUATION OF THEIR FINANCIAL ASSETS AND LIABILITIES FROM THIS DISCLOSURE? IF YES, WHAT INFORMATION TOLD YOU THIS, IF NOT, WHAT INFORMATION DO YOU FEEL IS MISSING? AS AN INVESTOR, WOULD THIS DISCLOSURE GIVE YOU ENOUGH…

Difference between historical cost and fair value accounting In order to make the most profitable and rational decisions entity’s stakeholders have to evaluate organisation’s financial statements. Today’s world of rapidly changing prices has made it difficult to estimate what something is actually worth. Thus leading to debates at what price – historical costing price or market value – assets and liabilities should be reported. Therefore, before making any evaluations about reported transactions…

Moving towards Fair Value Accounting In the past, historical cost measures were mainly used for reporting as they are reliable. However, historical cost is only relevant upon acquiring the asset and becomes irrelevant as time passes. On the other hand, fair value-based reporting, which accounts for changes in fair values, can produce balance sheet figures that provide a better reflection of the company’s value. This is also why accounting bodies are moving towards fair value accounting (FVA). One of the…

CHAPTER 11 Current Liabilities and Payroll Accounting ASSIGNMENT CLASSIFICATION TABLE Brief Exercises 1 A Problems 1A B Problems 1B Study Objectives 1. Explain a current liability, and identify the major types of current liabilities. 2. Describe the accounting for notes payable. 3. Explain the accounting for other current liabilities. 4. Explain the financial statement presentation and analysis of current liabilities. 5. Describe the accounting and disclosure requirements for contingent liabilities…

Critical analysis Article descriptions The journal article named “The crisis of fair-value accounting: Making sense of the recent debate” is written by Christian Laux and Christian Leuz in Accounting and Organisations and Society journal (2009). Mr Laux works as a professor of finance at the Goethe University in Frankurt and his research has been published in many journals. Mr Leuz works as a professor of International Economics at University of Chicago Booth School of Business. He has done a…

Shareholder Value and Current Financial Crisis: An analysis of the Relationship INTRODUCTION Corporate governance in a particular firm is inevitable for its administration, policy making and overall health. In other words, ‘Corporate governance affects the development and functioning of capital markets and exerts a strong influence on resource allocation[1].’ Not only does it conduct the present running of a firm but it also has a futuristic outlook and a good corporate governance system encourages…

Introduction Accounting is essential to every business because companies can manage and analyse the success of the business. This paper will be discussing Accounting is the process of measuring, processing and communicating financial and non-financial information among internal and external parties of entities. By doing accounting, the business knows the value of its assets such as liabilities, revenues; costs, productivity of labour, expenses, and profitability of the business by doing these…