A company should disclose information only if the perceived benefits of the disclosure exceed the costs ofproviding the information. Which constraint does this statement describe?

Q: Explain how the move towards greater use of fair value accountingmight increase information risk

A: Introduction: Information risk: Information Risk is the risk that the information based on which…

Q: Whether the firm uses the​ market-based approach or the​ cost-based approach for pricing​ decisions,…

A: Introduction: Market based approach: For calculating the selling price of Asset firm uses market…

Q: to refer to the degree of uncertainty that the future economic benefits associated with the item…

A: Probability refers to the possibility of a uncertain event take place in the future. Generally, an…

Q: Not being able to take advantage of the trade discounts does not mean that it is costly on the part…

A: Trade discount is reduction of cost of goods or services provided. Normally trade discount given on…

Q: The value chain is all the activities associated with providing a product or service. True or False?

A: Cost Accounting: It is the process of collecting, recording, analyzing the cost, summarizing cost,…

Q: What is fair value accounting?

A: The accounting is a process to identify the transactions, classify and record the transactions and…

Q: What is the guiding objective is that lessees and lessors provide disclosures?

A: Lease: Lease is a contractual agreement whereby the right to use an asset for a particular period of…

Q: What are retakaful and reinsurance and how takaful products can be used for hedging purposes?

A: Retakaful and reinsurance : In simple words, The Muslim reinsurance sector is referred to as…

Q: Why is the distinction between a conditional and unconditional contribution important for accounting…

A: Step 1 The main difference between conditional and non-conditional contributions is that to…

Q: If so many companies find non-GAAP calculationsuseful when communicating with their stakeholders,…

A: GAAP is a set of rules for efficiently capturing and interpreting accounting data. GAAP standards…

Q: Explain why, in most cases, a seller recognizes revenue when it delivers its product rather than…

A:

Q: what is the advantages and disadvantage of disclosure? and why is disclosure important?

A: The full disclosure means that company's financial statements should tell about all the important…

Q: Explain oF preparing what are the costs the Financiad inform

A: Financial reporting is the transmission of a commercial enterprise's published financial statements…

Q: Explain how hazards will help reduce the impact of loss in a company?

A: Loss is referred to as the decrease in net income in an financial terms, which is outside the normal…

Q: What is the authoritative status of the Conceptual Framework? The Framework applies when FRSC…

A: The Conceptual Framework's main goals are to help users of financial reports comprehend the data in…

Q: A company believes that it is subject to scrutiny by particular interest groups such as employee…

A: Revenue recognition is an accounting theory that specifies the requirements that must be completed…

Q: To determine if a performance obligation exists,   A. none of the alternatives are correct.   B.…

A: Introduction: Performance obligation: Rendering service or delivering the goods are pending , its a…

Q: Of what merit is the contention that the allowance methodlacks the objectivity of the direct…

A: Direct write-off method: This method does not make allowance or estimation for uncollectible…

Q: Explain Prorations, Escrow Costs, and Payments to Third Parties?

A: Prorations, Escrow Costs and Payment to Third Parties all are methods of payments as per different…

Q: In the Framework, it is possible that an entity may not disclose relevant information. Why?

A: The <IR> Framework is the International Integrated Reporting Framework, which presides over…

Q: Information is neutral if it: a.  provides benefits which are at least equal to the costs of its…

A: Information is neutral if it: As neutral as per this question means when the particular information…

Q: Reporting financial information imposes costs and obviously these costs should be justified by the…

A: Financial information means information related with the financial statements like Income Statement,…

Q: Discuss the concept of exposure and explain why firms may tolerate some exposure.

A:

Q: Cite a specific example of non-value added activity that can be eliminated in a particular industry.…

A: NVA activities are tasks that do not add to the shape or function of the market. Filing, copying,…

Q: How can patents, copyrights, and legal challenges be used to manage business risk?

A: A company can adopt a risk management strategy to mitigate business risk.

Q: Ratio analyses may not be helpful in explaining the performance of the company. Explain the…

A: Ratio analysis is a tool which is used to analyze and asses the financial performance and situation…

Q: What is a reasonably foreseeable use of a productand why is it important to companies?

A:

Q: What are the segment reporting rules under the FASB, and how do they differ from the IFRS? How are t

A: Segment reporting rules under the FASB Business segment reporting breaks out a company's financial…

Q: Should a company allow the owners to use the resources as they see fit?

A: solution : Should a company allow the owners to use the resources as they see fit?…

Q: The objective of profit maximization should be constrained by the requirement thatprofits be…

A: The ultimate purpose of any firm is to raise profits, which can lead to profit-motivation conflicts…

Q: What are some of the possible costs that could result from a revision of an accounting standard?

A: Financial Accounting Standards Board (FASB):   It is a private, non-profit organization which is a…

Q: Answer of the following question related to these characteristics and constraints. A company should…

A: Accounting:   Accounting is a system, or a process of collecting and organizing economic…

Q: Why do somew companies report "Non-GAAP" measures?

A: Non GAAP measures are the measures opted by the companies to show some aspects outside the financial…

Q: What would be the reason a compony would overstate income

A: If the value of a business seems to be too good to be true, the business might have overstated their…

Q: In applying the revenue recognition​ principle, which of the following statements regarding multiple…

A: Explanation: For an example  If an entity has signed a contract that has to perform more than one…

Q: Should public companies be allowed to publish any non-GAAP performancemetrics? Why or why not?

A: Non-GAAP reports the norm and cause changed on a case by case basis to additional precisely reflect…