Define Loss contingency.

Q: Define breakup value

A: The breakup value is the valuation of the company for liquidation in the market. It is best known as…

Q: Distinguish between losses from transaction exposure, operating exposure, and translation exposure?…

A: Investors get into contract for the future as well as the current transactions. The company will be…

Q: What disclosure is made if a loss contingency is reasonably possible?

A: Contingent Liability: Contingent liability is one form of liability that arises based on a…

Q: How is a gain contingency reported?

A: Gain contingencies: The excess of book value over the amount to be received is actually gain…

Q: Define net operating loss.

A: For income tax purposes, a net operating loss (NOL) is the result when a company's allowable…

Q: Define Restoration costs.

A: Restoration means the act of renewing or repairing something.

Q: Distinguish between losses from transaction exposure, operating exposure, and translation exposure?…

A: The Answer :

Q: How one can identify the respective Loss Exposures in Risk

A: The degree of uncertainty and/or potential financial loss connected with an investment choice is…

Q: Define Depletion.

A:

Q: What disclosures are required for remote likelihood of losses?

A: Likelihood of losses means chance of occuring loss in some future events of the business. Likelihood…

Q: “Costs of abnormal spoilage are losses.”Explain.

A: Abnormal spoilage is spoilage that is not inherent in a specific production process and will not…

Q: Disadvantage of institutional based correction

A: Following is the answer to the given question

Q: 1. Define and briefly discuss a loss contingency.

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: What is the impairment loss to be allocated to the equipment?

A: An impaired loss is the loss which results to the asset of the company as a result that the market…

Q: Define sacrificing ratio.

A: Definition of Sacrificing Ratio:Sacrificing ratio is the ratio where the old partner give their…

Q: Explain the accounting for loss carrybacks and loss carryforwards.

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

Q: What is the equipment replacement?

A: Under replacement, one is focused with equipment and machinery that worsens with the passage of…

Q: Discuss the risk of material misstatement inthe acquisition and expenditure cycle.

A: Material Misstatement refers to the misleading information in the statement of affairs of the…

Q: Explain the meaning of the following terms: markup,additional markup, markup cancellation, net…

A: Products are priced at the selling price and used to compare different product lines. The selling…

Q: When are loss contingencies recorded?

A: Definition:   Contingent liability: This is an uncertain obligation which might be incurred on a…

Q: Risk of material misstatements increases if

A: Please see the next step for the solution

Q: Define devaluation

A: Currency- Currency is defined as money in terms of paper or coins which is issued by the government.…

Q: Explain the accounting for loss carrybacks.

A: Loss carryback is an accounting situation where the net operating loss of current year can be set…

Q: The depletion expense is

A: Depletion: It refers to the process of proportionately distributing the cost of the extracting…

Q: Define a loss contingency. Provide three examples

A: Loss Contingency:   It is a form of contingency where an existing situation or circumstance where…

Q: What is the condition of security? Has it been reasonably well maintained or does it show the…

A: Security is a financial instrument, either equity or debt, which has some legal values. Securities…

Q: Define the term spoilage.

A: Definition:   Product costs: The costs incurred to acquire the merchandise, ship the stock, prepare…

Q: Describe a “loss carryforward.” Discuss the uncertainty when it arises.

A:

Q: What is the maximum loss protective put? R

A: Put option: This option holder will have right to sell a stock, but it is not an obligation to sell…

Q: - restricted assets

A: Restricted means limited by stipulations.

Q: Define divestiture

A: Introduction: A divestiture might happen when a business unit is thought to be redundant afterward…

Q: Asset disposal

A: Asset is the resources owned by a firm at a particular point of time out of which it is expected…

Q: Define Impairment Losses.

A: Impairment loss: An impairment loss is an expense reported on the income statement, it is the…

Q: Define the term salvage value of the equipment?

A:

Q: risk of material misstatemen-

A: Risk of material misstatement is the vulnerability of financial statements to errors or frauds that…

Q: Which are the Sources of Information for Identifying Distressed Properties?

A: A property is termed as "Distressed" if the loan value is higher than the offer price. A property…

Q: Define Losses

A: Losses are referred as the one-time elimination or decrease in value of asset in the business. It is…

Q: Explain how to account for the impairment of a held-tomaturitydebt security.

A: Debt securities: Debt security is money borrowed at a specific rate of interest which must be repaid…

Q: Explain the accounting for loss carryforwards.

A: The Accounting For Loss Carryforwards will be explained:

Q: .    In determining the amount of a provision, a company using IFRS should generally measure: a.…

A: An economic obligation created and maintained to cover the future liability is termed as provisions.…

Q: Define salvage value

A: ASSET REDUCE ITS CVALUED THROUGH OUT THE LIFE OF THE ASSET.

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.