Reporting an investment at its fair value means adjusting its carrying amount for changes in fair value after its acquisition (or since the last reporting date if it was held at that time). Such changes are called unrealized holding gains and losses because they haven’t yet been realized through the sale of the security. If the security is classified as available-for-sale, how are unrealized holding gains and losses reported if they are not viewed as giving rise to an other-than-temporary impairment?

Q: receivables not measured initially at their transaction price are measured initially at a. fair…

A: Financial Asset or Receivables: The financial Asset or Receivables is measured initially at fair…

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Q: The measurement of revaluation model is at: Fair value at the date of acquisition less any…

A: As per the INTERNATIONAL ACCOUNTING STANDARD Revaluation concept the measurement of Revaluation…

Q: In a transaction accounted for using the acquisition method where consideration transferred is less…

A: The acquisition method is used when a business is taken over by another business.

Q: If a company uses the fair value model to value investment property, changes in the fairvalue of the…

A: Under the fair value model, remeasuring of investment property is made at the end of each reporting…

Q: If the fair value of net assets is less than the offered price the acquisition considered as a…

A: Fair value of the assets is the amount which can be fetched by entering into sales transaction…

Q: Which of the following statements related to long-lived assets is true?     Depreciation is…

A: Depreciation : Depreciation is an accounting method of allocating the cost of a tangible or…

Q: Which among the sentences below is incorrect? An entity shall measure a current asset or disposal…

A: The correct answer for the above mentioned question is given in the following steps for your…

Q: Which ONE of the following is not correct regarding the possible benefits of an acquisition?

A: An acquisition is when one enterprise purchases maximum or all of any other company's stocks to…

Q: hich of the following is not one of the components of other comprehensive income?   a. changes in…

A: Which of the following is not one of the components of other comprehensive income?   a. changes…

Q: 6. Which of the following is not considered an appropriate application of offsetting under PAS 1?…

A: Offsetting-:  Offsetting, otherwise also named netting, carries place when entities propose their…

Q: Which statement is correct regarding derecognition of financial assets?   A. Transfer of risks and…

A: The process of derecognizing financial assets in which the entity fully transfers the asset and all…

Q: When using the fair value method, we adjust the reported amount of the investment for changes in…

A: The sales price agreed by the buyer and seller is termed as Fair value assuming both parties are…

Q: When an investment is acquired to be held for an unspecified period of time as opposed to being held…

A: Debt securities: The financial instruments which are bought by investors, or corporations, or mutual…

Q: Which statement is incorrect regarding reclassification of financial assets? Group of answer…

A: The effective interest rate and the measurement of expected credit losses are adjusted as a result…

Q: Under IFRS, the recoverable amount of an asset is     The higher of an asset’s value in use or its…

A: Impairment of an asset: Impairment is the loss that occurs due to, unexpected decrease in the market…

Q: Examples of when an entity has retained substantially all the risks and rewards of ownership of…

A: Following is the example of entity has retained substantially all the risk and rewards of ownership.

Q: hen a firm disposes of a capital asset, the difference between the net book value of the asset and…

A: Basic Accounting Concept Capital gain or loss on transfer of assets

Q: If a company purchases a limited-life intangible asset, they _____________ amortize the asset and…

A: Intangible assets are those that are not monetary assets and cannot be touched or seen. These arise…

Q: Reporting an investment at its fair value requires adjusting its carrying amount for changes in fair…

A: Available-for-sale (AFS) securities: These are short-term or long-term investments in debt and…

Q: The best evidence of fair value for an investment property is price in a binding sale agreement…

A: Fair value is the value of investment measured at market prices for assets and liabilities.

Q: loses significant influence over the associate, the balance of the investment in the associate is…

A: When the company has significant influence over the associate, then equity method should be used for…

Q: Depreciation is based on the fair value of assets. An impairment loss occurs if the carrying value…

A: GIVEN     Depreciation is based on the fair value of assets. An impairment loss occurs if…

Q: Which of the following situations indicates that an asset is impaired?a. The net book value of the…

A: Impairment: It can be defined as a significant reduction in the recoverable value of the goodwill…

Q: Which statement is incorrect regarding reclassification of financial assets? All…

A: Reclassification of Financial Assets : (1) The Reclassification of the financial assets are…

Q: Which of the following is correct about subsequent measurement of financial asset at fair value? a.…

A: Fair value through other comprehensive income-financial assets are classified and measured at fair…

Q: true or false ___________ if the fair value of the asset given u[ in exchange transaction that has…

A: Fair market value: It is the value of the fixed asset on which a particular asset is being sold in…

Q: In an accretion/dilution analysis of an acquisition, if the purchase price exceeds the book value of…

A: Accretion / Dilution Analysis of Acquisition Acquisition of the companies means the taken over the…

Q: which statements is incorrect regarding for value measurements? a. fair value is normally the…

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

Q: 1. When reclassification is made from owner occupied property to investment property that will be…

A: Reclassification of owner occupied property to Investment property Treatment of gain or loss while…

Q: Consider the following statements: I. If the financial asset is reclassified from amortized cost to…

A: IFRS 9 deals with the classification and reclassification of financial assets and liabilities. When…

Q: If the entity uses the fair value model for investment property, which statement is true?   a. The…

A: Fair value of investment property means value at which property can be exchanged in open market.…

Q: All of the following statements are true, except:     When property is acquired in exchange for…

A: The property, plant, and equipment are recorded as a tangible asset of the company. it is acquired…

Q: Which of the following statements in incorrect?   a. Donations of PPE should be recorded at the…

A: Following is the answer to the given question

Q: If a firm's tangible assets are measured at their fair (intrinsic) value, one must forecast that…

A: Fair (Intrinsic) value: When the price of tangible assets such as buildings, machinery, etc. is…

Q: Under the impairment of assets, value-in-use is *   a. The undiscounted present value of future…

A: The impairment loss is recorded as an expense in the income statement of the company.

Q: The price that would be received to sell an asset or paid to transfer a liability in an orderly sale…

A: In accountancy, an asset can be defined as a business item used for the purpose of running business.…

Q: For an investment to be classified as a current asset,a. the investment must be easily convertible…

A: Definition:

Q: (Based on Appendix 12B) Reporting an investment at its fair value requires adjusting its carrying…

A: Available for sale securities: These are the securities which are not intended to be sold in the…

Q: When an item of property, plant and equipment is acquired by issuing equity shares, which of the…

A: Option C is the correct Answer

Q: The cost of a nonmonetary asset acquired in exchange for another nonmonetary asset when the exchange…

A: Fair Value:Fair value is the price settled and agreed by both buyer and seller, each of them acting…

Q: What is an impairment loss?   A ) The amount by which the carrying amount of an asset exceeds the…

A: An impairment loss is a recognized decrease in the par value of an asset caused by a deterioration…

Q: Transfers of investments between categories   a. Should always affect net income b. Are accounted…

A: Transfer of an Investment:- It is a procedure where one company or entity sells its investment to…

Q: The prior period will be affected if during the current year the management of an entity decides to…

A: Prior period is the period before the current accounting year. Non current asset is the long term…

Q: cost of the new asset acquired

A: Cost of acquisition of new asset = Carrying amount of exchanged asset + Cash difference paid