b) Briefly describe how the fair value model, as allowed by LAS 40, is applied.

Q: What do the allowable deductions include?

A: Tax: Tax refers to a compulsory payment or a contribution to the state revenue, levied by the…

Q: Are there circumstances in which the cost method is required under U.S. GAAP but not under IFRS?…

A: IFRS: International Financial Reporting Standard is abbreviated as IFRS. The IFRS is set up to bring…

Q: In your opinion, should PWI be subject to civil litigation?

A: Here, it is to be determined that whether PWI be subject to civil litigation or not.

Q: Investment Property can be classified under the following methods except?   Cost Cost and Fairvalue…

A: Solution: Investment Property can be classified under the following methods except "Cost and Fair…

Q: Which one of the following is not true concerning the treatment of investment properties under IAS…

A: Upon Initial recognition, the investment property shall be measured either at cost or fair value.…

Q: Why allow the fair value option for financial assets and liabilities and not for, say, buildings or…

A:

Q: Explain THREE problems associated with the reliability and measurement of fair values.

A: Introduction: Fair value reporting is a difficult financial reporting standard because financial…

Q: Contrast the constructive receipt doctrine with the claim of right doctrine.

A: As per the constructive receipt doctrine, a tax payer is required to pay taxes on income even if the…

Q: What is meant by “right of return”? “Bill and hold”?

A: Financial accounting standards board (FASB): This is the organization which creates, develops, and…

Q: What amount of gain should be reported as a result of the modification of terms under ifrs?

A: As per the restructuring of terms, 1. Loan reduced by 20% i.e., P3,000,000 * 20% = P 600,000 2. Loan…

Q: why does fair value seeking for an acquisition?

A: Reasonable worth is a term with a few implications in the monetary world. In contributing, it…

Q: What method is used in the Evaluation Phase of fair value?

A: Income Approach

Q: With the aid of examples, highlight the differences between the following terms: Rights issue and…

A: Solution:- Capitalization issue are also known as bonus issue. The following difference between…

Q: 6. A liability is recognized in the statement of comprehensive income when it is probable that an…

A: As per IASC framework, the liability is recognized in the financial statement when two conditions…

Q: Is fair representation the same with faithful representation

A: Fair presentation, as per IAS 1, entails the faithful representation of the impacts of events,…

Q: Which of the following statements are an example of a violation of the sunk cost principle? There…

A: Since you have posted a question with multiple sub parts therefore, we will solve the first three…

Q: Who bears the costs of appraisal if the fair value ascertained by the appraisers is higher than what…

A: A stockholder can exercise his appraisal rights in case of merger or acquisition of the corporation…

Q: Explain the difference between liquidated damages and penalities

A: Damage refers to the loss that results from some injury to a person, company, property, or…

Q: Which of the following is not an essential characteristic of a liabili O All are essential…

A: Liabilities are those present obligations that are due to business and they could be short-term in…

Q: Briefly describe the fair value hierarchy.

A: Fair value: A value which is determined based on the market situation, business demand, and the…

Q: Explain Valuation and how can it be useful for determining

A: Valuation is to know how much is assets worth according to market or deciding fair value of assets.…

Q: 17. Which of the following amounts shall not be recognized in profit or loss with respect to…

A: Rental Income from the Investment property shall be recognized in the profit and loss statements as…

Q: What is meant by fair trade

A: Fair-trade is an agreement between a buyer and seller, in which seller has to provide good working…

Q: If this scenario were brought to a NAFTA tribunal, Decom Mat would most likely win. Explain why.

A: NAFTA -North American Free Trade Agreement provides a framework for rule based dispute resolution…

Q: IASB requires the use of _____ as a measurement basis. a. historical cost b. not given c. current…

A: Introduction:- The International Accounting Standards Board (IASB) issued Framework for the…

Q: Is the threshold for recognizing a provision under IFRS different than it is under U.S.GAAP?…

A:

Q: fair value of an

A: Fair value of ordinary share = Next dividend/(Required rate of return - Growth rate of dividend)

Q: Describe required fair value disclosures.

A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…

Q: n of the following statements' is the fair value model of valuing erty?

A: The answer has been mentioned below.

Q: a) Explain the concepts: Single Entity Concept, Control and Fair value.

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: What are substantive participating non-controlling rights?

A: Noncontrolling rights that allow the noncontrolling shareholder to participate in either corporate…

Q: ds used in fair

A: Fair value: Fair value refers to the amount receivable from sale of an asset, or payable on…

Q: Explain the fair value option.

A: Fair Value Option: It is a process of measuring the financial assets and liabilities using the fair…

Q: What are the three types of valuation techniques can be used to measure fair value?

A: Fair value: Fair value refers to the amount receivable from sale of an asset, or payable on…

Q: Laux and Leuz (2009) argue that “the fair value debate is far from over and much remains to be done”…

A: The financial crisis of 2008 has led to a major debate over fair-value accounting. Many critics…

Q: What are the key elements of the definition of ‘fair value’? Explain the effects of inclusion of…

A: Fair value is the price that would be received to sell an asset or paid to transfer a liability in…

Q: How might exclusion clauses be found to be unenforceable?

A: Exclusion clause is defined as the term of contract that looks for restricting or excluding the…

Q: How much is the fair market value of the equipment which B contributed?

A: Partnership is a form of business in which partners agree to contribute capital into partnership and…

Q: 26. Which of the following measurement methods are acceptable under IFRS 9? O Amortised cost and…

A: As per IFRS 9 Financial Instruments, Financial assets can be measured at: Amortized cost Fair value…

Q: how to compute in simplest form the non controlling interest using fair value method and…

A: Non-Controlling Interest Non-controlling interest or minority interest situation occurs when an…

Q: s it true that legal enforceability of a right, for example ownership, is necessary for control over…

A: Legally enforceable right states that the right to set off need to be contingent on the future event…