How should changes in the estimated unguaranteedresidual value be handled by the lessor?

Q: Fair Value measurement

A: Fair value is the estimated selling price of an asset or settlement price of a liability.

Q: What are the fundamental differnces between lessor and lessee?

A: Lessor is the person who has the ownership of the leased asset and grants on lease his asset for a…

Q: How is the revaluation surplus handled under the revaluation model?

A: The question is related to Revaluation model under IAS16 Property, Plant and Equipment. Under this…

Q: What is the quantitative disclosure of lessee?

A: Lease Agreement:   It is a contract between the owner of the asset (lessor) and the person who uses…

Q: Discuss the difference between an unrealized holding gain and a realized gain.

A: The gain is the excess of revenue earned over the expenses incurred.

Q: Difference between present value and net present value.

A: Present value (PV) is the current value of a future sum of money or stream of cash flow given a…

Q: a. what is the difference between the discount rate used for net present value and the internal rate…

A: Discount rate used for net present value is rate which investor want to earn from a project . It is…

Q: Explain the effect of issuance cost on firm value.

A: There are issues cost associated with debt and equity that has impact on  value of firm.

Q: what is the effect of making changes to net present value calculations

A: Net Present Value = Present value of future cashflows - Initial Investment

Q: What is the profession’s recommendation in regard to the use of the term “surplus”? Explain.

A: The professionals has recommended that use of term surplus should be discontinued in balance sheet…

Q: How much gain or loss will Bill recognize on the distribution? What is Bill's basis in the inventory…

A: The calculation of gain or loss on distribution and basis in inventory and capital asset is shown…

Q: ected rate of return concept differ from that of the rea

A: There are many method of valuation of stock based on expected rate and realized return and dividends…

Q: a present obligation?

A: Given: To explain the economic resource and the present obligation as,

Q: Summarize the basic procedure of Net-Present-Worth Criterion?

A: Step 1: Initially ascertain the initial investment of the initial outlay amount (CF0). The initial…

Q: Should the analyses show the sensitivity of the discounted net present value and other outcomes?

A: The question is based on the concept of a sensitivity analysis, used as a analysis tool in capital…

Q: How fair value measurement?

A: Fair Value In Accounting term Fair Value means the recognition of amount which are actually value…

Q: In general terms, how would a change ininvestment opportunities affect the payoutratio under the…

A: Answer: In the residual dividend policy, the distribution is calculated after the company’s spending…

Q: What is lessor?

A: A lease is the agreement between two individuals. Under the lease agreement one individual provide…

Q: The net present value of an investment represents the difference between the:

A: The Answer :

Q: hat is the current market view on AUD/USD? (Will it appreciate and which depreciate? and why

A: The exchange rate depends on the interest rate in the market and inflation in the market and goes up…

Q: What discount rate is used in a lessor’s NPV analysis?

A: Weighted average cost of capital is used as discount rate in Lessor's NPV analysis.

Q: What is the quantitative disclosure of lessor?

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

Q: Which of the following subsequent expenditures would not be capitalized?

A: Ordinary repairs and maintenance expenditure would not be capitalized.

Q: What is the definition of “actuarial present value”?

A: Accumulated Benefit Obligation: It is an inexact rate of a company's pension plan liability towards…

Q: What is the current market view on GBP/USD? (Will it appreciate and which depreciate? and why?)

A: The exchange rate are dependent on the the market factors and other factors which are point of…

Q: What is the net present value method?

A: Net Present Value Method: It is the present value of the annual cash flows and the project initial…

Q: What is the definition of valuation allowance?

A:

Q: What is the process of consideration of the payback period?

A: Payback period It computes the required time to recover back the project’s investment by way of…

Q: Describe the method of developing a Present Worth Distribution?

A: Present value or Present Worth of an investment or a project is the value of future cash flow…

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

A: The answer has been mentioned below.

Q: Which investment return, expected or actual, does GAAP allow in the calculation of benefit cost?

A: Benefit cost: When an entity creates a benefit plan setting aside some moneys to meet future…

Q: What is Capitalized-Equivalent Cost?

A: Cost is the price of something that buyer pays to the seller to purchase that thing.

Q: are return on investment, residual income, and EVA qualitative components?

A: Qualitative components refer to the intangible effect of the events and transactions of business…

Q: what is meant by Capitalized cost?

A: Capitalized cost is a cost which is incurred in purchasing the fixed asset or making the fixed asset…

Q: How can we invest in two assets with dissimilar return characteristics?

A: Diversification is one of the tactics to keep in mind while forming a portfolio. Investing all the…

Q: What is the relationship between a discount rate (or IRR) and a capitalization rate? What causes…

A: Introduction: The discount rate is nothing but a rate that reduces potential cash flows in order to…

Q: What is net present value? How does net preset value work?

A: Net present value:- Net present value is the investment evaluation technique, where we evaluate…

Q: What is lessee?

A: Lessee: It is term used for any person who has rented any land-property from someone else. That is…

Q: ompensation income may be in the form of monetary or in-kind benefit. TRUE OR FALSE?

A: Compensation means the amount a company give to its employees for services rendered.