How does the fair value model differ from the revaluation model?
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How does the fair value model differ from the revaluation model?
Question 4 options:
| a |
Increases in carrying amount above a cost-based measure are recognized in equity |
| b |
Changes in fair value are recognized in profit or loss |
| c |
a and b |
| d |
neither a or b |
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- What is the default classification for an equity investment? A Fair value through profit or loss B Fair value through other comprehensive income C Amortised cost D Net proceedsAccording to the fair value principle, assets and liabilities should be reported Select answer from the options below 1.at their fair market value. 2.at their historical cost. 3.at a value agreed upon by interested parties. 4.at cost plus inflation.Following IFRS, which statement is false? Group of answer choices The revaluation surplus account is a specific account reported as an unrealized gain in the statement of comprehensive income. If the revaluation initially increases the long-term operating asset's carrying value, the firm records the difference between the carrying value and the fair value (the unrealized gain) in the revaluation surplus account. The revaluation surplus account is a specific account reported in other comprehensive income (OCI) in the statement of comprehensive income. If a long-term operating asset's fair value decreases in subsequent accounting periods, after an earlier write-up, the firm reduces the revaluation surplus if it exists.
- Leftover hypothesis of profit is relevant just when: a. The expense of held income lower than the expense of obligation b. the expense of held income is higher than the expense of obligation c. the expense of held income is equivalent to the expense of obligationAn investment in equity instrument may not be classified as a financial asset subsequently measured at Group of answer choices Fair value through profit or loss None of these Fair value through other comprehensive income Amortized costSelect the investment accounting approach with the correct valuation approach: Not Held-for-Collection Held-for-Collection a. Amortized cost Amortized cost b. Fair value Fair value c. Fair value Amortized cost d. Amortized cost Fair value
- Statement 1: When the residual value is guaranteed by the lessee, the lessor shall include the same in its gross investment and net investment.Statement 1: When the residual value is not guaranteed by the lessee, the lessor shall include the same in its gross investment and net investment. Group of answer choices Only statement 2 is correct Both statements are incorrect. Both statements are correct Only statement 1 is correct6. What is the proper treatment for noncash asset received from a non-stockholder? Group of answer choices a. The share premium shall be credited for the fair value of the noncash asset. b. The share premium shall be credited for the book value of the noncash asset. c. The income account shall be credited for the fair value of the noncash asset. d. The income account shall be credited for the book value of the noncash asset.Biological assets are measured as followsInitial Subsequenta. cost fair value less costs to sellb. fair value fair valuec. fair value lower of cost and fair value less cost to selld. fair value less costs to sell fair value less costs to sell
- 15. An investment in equity instrument may not be classified as a financial asset subsequently measured at Group of answer choices Amortized cost None of these Fair value through other comprehensive income Fair value through profit or lossWhich of the following statements is correct? a. IFRS permits the fair value option for the equity method of accounting. b. GAAP permits recovery of impairment losses. c. Under IFRS, non-trading equity investments are accounted for at amortized cost. d. IFRS and GAAP both have a trading investment classification.What factors should be considered in determining the issue price of a debenture. and Provide some examples of items that would be adjusted directly against equity, rather than beingincluded as part of profit or loss.
