IFRS 13 was issued to provide guidance on measuring items at a fair value rather than historic cost. Discuss what is meant by the measurement of fair value and discuss some of the advantages and limitations of implementing the standard.
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IFRS 13 was issued to provide guidance on measuring items at a fair value
rather than historic cost. Discuss what is meant by the measurement of fair
value and discuss some of the advantages and limitations of implementing the
standard.
Step by step
Solved in 3 steps
- b) IFRS 13 was issued to provide guidance on measuring items at a fair value rather than historic cost. Discuss what is meant by the measurement of fair value and look at some of the advantages and limitations of implementing the standard.IASB requires the use of _____ as a measurement basis. a. historical cost b. not given c. current cost d. fair valueRequired: Discuss the process of determining the fair value of the asset acquired from VLB as prescribed by MFRS 13 Fair Value Measurement.
- Choose the correct.For which of the following does IFRS for SMEs not provide a simplification of full IFRS?a. Goodwill.b. Borrowing costs. c. Development costs.d. Inventory.Identify and cite the relevant topics, subtopics from the FASB Accounting Standards Codification regarding Goodwill impairment. Beyond the assessment of qualitative factors, what other evidence should be considered for the purpose of goodwill analysis? (Speak to any other evidence that points to goodwill/impairment & its analysis – Other than qualitative/quantitative factors) Please cite the appropriate FASB ASC topicsBoth standards of IAS 16 and IAS 40 are very similar in nature and share certain common guidelines as well. However, it should be noted that the differences between IAS 16 and IAS 40 will be affecting the company’s performance reporting. To determine the application of respective standards, depend on the nature, business model and usage of the non current asset. The reporting entities are required to comply with IAS40/MFRS 140 in relates to the accounting treatment of investment property upon the determination and classification of property. Wonderful company owns a land which have yet to decide on the development of the land. The land was purchased for RM30 million on 1 January 2019 and had a market value of RM48 million on 31 March 2020. Management wish to measure the land at fair value where this is allowed by accounting standards. The company has 31 December of financial year ends. Although the disclosure of the fair value of investment properties enhances the ability of investors…
- 1.Provide a detailed answer to the following questions including references to the relevant provisions in the ITAA 1997 and any ATO issued interpretive guidance: a. what are the 5 elements of the cost base and reduced cost base of a CGT asset? s the cost base of a CGT asset subject to any type of modification ? what makes up the copital proceeds of a CGT asset? Are the capital proceeds subject to any modifications? 2.Which of the following items forms part of the assessable income of an Australian resident taxpayer (under any provisions, but not the CGT provisions). Give brief reasons for your answers a. A table purchased at a garage sale for $80 and sold for $250. b. 500 shares in a company allotted at a price of $1 each to an employee of the company. At the time of issue, shares of the company were being traded on the stock exchange at $1.50 but at the end of the year of income their price had dropped to $0.90 c. A prize in a literary competition won by a journalist.US GAAP generally follows historical cost accounting in reporting property, plant, and equipment (PP&E). IFRS is moving towards fair value accounting with respect to reporting PP&E. Which approach do you think is preferable? What are the pros & cons of each? In your analysis, keep in mind the point of view's of the public users, internal users, and practitioners.One of the main differences between U.S. GAAP and IAS/IFRS is the measurement of property, plant & equipment subsequent to initial recognition. Read IAS 16 and answer the following questions. Provide a list of the references you have used to search this topic. How should any claim for compensation from third parties for impairment be accounted for? How should the recoverability of the carrying amount of property, plant & equipment be accounted for? How should any revaluation surplus from a revalued asset be treated if the revalued asset is disposed of?
- Which among the sentences below is incorrect?A. An entity shall measure a current asset or disposal group classified as held for sale at the lower of carrying amount or fair value less cost of disposal.B. One of the conditions that exists if the sale is highly probable is that there is an active program to locate a buyer and complete the plan must have been initiated.C. Impairment loss is the writedown to fair value less cost of disposal.D. An entity can recognize a gain if there is a subsequent increase in fair value less cost of disposal but only up to the impairment loss previously recognized.One of the main differences between U.S. GAAP and IAS/IFRS is the measurement of property, plant & equipment subsequent to initial recognition. Read IAS 16 and answer the following questions. Provide a list of the references you have used to search this topic.?1) How should any claim for compensation from third parties for impairment be accounted for?2) How should the recoverability of the carrying amount of property, plant & equipment be accounted for?3) How should any revaluation surplus from a revalued asset be treated if the revalued asset is disposed of?4) What additional disclosures should be made if property, plant & equipment are stated at revalued amounts?5) Explain the effect on the company’s financial statements if a company switches from the historical cost principle to the revaluation model? How should this change be accounted for in the financial statements?Briefly explain the differences between U.S. GAAP and IFRS in the measurement of an impairment loss for goodwill.
