What alternative approaches can be used to estimate the stand-alone selling price of performance obligations that are not sold separately?

Q: what is the effect of purchase supples on accout on current ratio?

A: Current ratio is the one that shows the current assets as numerator and current liabilities…

Q: Why Sales revenue does not include the residual value?

A: The residual value, also known as salvage value, is the estimated value of a fixed asset at the end…

Q: What are the quantitative disclosures that must be done by lessee?

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Q: What are joint costs? How do they affect the sell or process further decision?

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Q: What are the differences between market ordersand limit orders?

A: Market orders might not be executed external of market times or if trading in a specific stock is…

Q: In general it argued that the lower of cost of market rule is supported most closely by which of the…

A: The lower of cost or market rule is related to valuing the inventory, the company should value the…

Q: a. The market value of the comps should be available.   b. The valuation object should be compared…

A: Share valuation is the process of determining the value of the shares based on certain factors.…

Q: When a contract includes an option to buy additional goods or services, when does that option give…

A: Contract: Contract is a written document that creates legal agreement between the parties for buying…

Q: AAP should require fair value measurement of either more o

A: A fair value measurement is used to determine the worth of a certain asset or liability. As a…

Q: Explain the difference between the forward price and the value of a forward contract. Give an…

A: Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only one…

Q: Explain how purchase commitments are recorded for the lower of contract price or market price.

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Q: (Based on Appendix 9) Explain how purchase commitments are recorded for the lower of contract price…

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Q: “Cost and price information play no role in negotiated transfer prices.” Do you agree? Explain.

A: Disagree with the statement “Cost and price information play no role in negotiated transfer prices”.

Q: I. PFRS 15 provides that where a contract with a customer has multiple performance obligations, an…

A: As per PFRS 15 revenue from contract with customers, it is based on 5 step  model. Identify the…

Q: What if the lessee is unaware of the lessor’s implicit rate?

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

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: When calculating a company’s WACC, should book value, market value, or targetweights be used?…

A: A company often raises money from various sources such that it has to provide a return in the form…

Q: What are the quantitative disclosures that must be done by lessor?

A:

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: Does GAAP distinguish between fair values that are readily determinable from current market prices…

A: Generally Accepted Accounting Principles (GAAP):  A set of accounting principles, practices and…

Q: a) Whether separate performance obligations exist, and to explain why you made this judgement. b)…

A: Step 1 As per US GAAP, provision for accounting standard for revenue recognition from customers,…

Q: standard setters?

A: Earnings management for contracting causes would be an interest in standard setters because of the…

Q: Is variable consideration included in the calculation of a contract’s transaction price? If so, how…

A:

Q: What tools are available for solving adverse selection and moral hazard problems in debt contracts…

A: There may arise various problems like adverse selection and moral hazards problem in equity and debt…

Q: How to incease profitability if PE Ratio, EPS Ratio, and ROE cannot be calculated because of its…

A: Accounting refers to the process of recording, summarizing, interpretation and communicating the…

Q: How do the FCFE, APV, and corporate valuation approaches differ from one another? How are they…

A: FCFE, APV and corporate valuation all are techniques of valuation on the basis of equity. This…

Q: How are sellers constrained from recognizing variable consideration, and under what circumstances…

A: The seller generally recognizes the amount of revenue which they believe will be received. In case…

Q: Explain why sunk costs are not considered in the analysis ofinvestment alternatives.

A: A sunk cost is also known as the retrospective cost, is a cost that cannot be recovered because it…

Q: Describe the statement Cost breakdown of lump -sum Bids?

A: Statement of cost breakdown is prepared to determine the individual elements that include the total…

Q: Access the FASB Accounting Standards Codification at the FASB website…

A: Given below are the citations from FASB for accounting of given items:

Q: What is a repurchase agreement (product financing)arrangement? How should a product repurchase…

A:

Q: What Is Fixed-Price Contract with Redetermination?

A: A fixed-price contract with prospective price redetermination provides for-       (a) A firm fixed…

Q: When allocating the transaction price to performance obligations when a stand-alone selling price is…

A: Introduction:

Q: What is the financial advantage (disadvantage) of further processing the intermediateproduct?

A: Further Processing means carrying the production of goods to another level and shifting its…

Q: Conceptually, how would you evaluate a quantity discount offerfrom a supplier?

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Q: How sensitive is the NPV to changes in the quantity sold?

A: Net Present Value (NPV) is a capital budgeting technique which uses a discount rate to bring all the…

Q: Why is the original cost estimate corrected based on buyout data?

A: Buyout process :              When a company acquires the controlling interest in another company,…

Q: How is the price of an item established in a target pricing contract?

A: Target pricing is the approach which is innovative and used at the initial stage of the new…

Q: How does the residual income approach overcome this problem?

A: Definition: ROI: It is a measure of the amount of return on a particular investment with respect to…

Q: What are the repercussions of taking profit before the contracting company's obligations have…

A: Financial obligations are the obligations, which are referred to as the responsibility of an…