what are some fundamental challenges in accounting and reporting for a noncontrolling interest?

Q: an investment in equity instrument may not be classified as a financial asset subsequently measured…

A: Solution: An investment in equity instrument may not be classified as a financial asset subsequently…

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

A:

Q: What is meant by a ‘statement of affairs’? How can the profit or loss of atrader be ascertained with…

A: What is meant by a ‘statement of affairs’?    It refers to a statement of assets and liabilities of…

Q: What is fair value accounting?

A: The accounting is a process to identify the transactions, classify and record the transactions and…

Q: What is controlling financial interest? How did the FASB define this in FIN 46(R)

A: Controlling financial interest is nothing but to exercise control over another financial entity by…

Q: In what situations is interest capitalized rather than expensed?

A: Capitalized interest is the cost of the funds used to finance the construction of a long term asset…

Q: Where should the noncontrolling interest’s claims be reported in a set of consolidated financial…

A: Identify where non-controlling interest's claims be reported in a set of consolidated financial…

Q: Are there any particular elements to interest-bearing transactions

A: There any particular elements to interest-bearing transactions will be explained:

Q: Can an entity include an asset in its balance sheet that it does not legally own?

A: An asset is a resource that is controlled by the entity from which future economic benefits are…

Q: What is the guiding objective is that lessees and lessors provide disclosures?

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

Q: Why are liability accounts included in the capital acquisitionand repayment cycle audited…

A: Liability accounts in the capital acquisition and repayment cycle are audited differently from…

Q: A debt restructuring that involves a modification of terms and does not require court approval may…

A: A debt restructuring that involves a modification of terms and does not require court approval may…

Q: . Which of the following statements is true? a.    The fair value option requires that some types of…

A: The fair value option allows, but does not require, that some types of financial instruments be…

Q: What is the fair value option? Briefly describe the controversyof applying the fair value option to…

A: Meaning of fair value option:

Q: Why is the distinction between a conditional and unconditional contribution important for accounting…

A: Step 1 The main difference between conditional and non-conditional contributions is that to…

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

A:

Q: under the conceptual framework for internationai financial reporting a non-contraling interest fits…

A: Non-controlling interest Non-controlling interest is also referred to as the minority interest…

Q: What are some possible agency conflicts between borrowers and lenders?

A: Answer: Agent: An agent is one who provides work on principal’s behalf.  Principal authorizes agent…

Q: What makes an account significant or an assertion relevant?

A: Significant Account  An account is said to be significant when there is a chance that the account…

Q: Common examples of financial abuse include:?

A: Financial abuse typically involves a family member or another person whom the older adult trusts…

Q: Define the term truth-in-lending laws? What are its requirements?

A: Answer: The 1968 Truth in Lending Act (TILA) is a federal statute of US aimed at encouraging…

Q: How does unearned revenue arise? Why can it be classifiedproperly as a current liability? Give…

A: Unearned revenue: The revenue which is received in advance by the company for the services or goods…

Q: Which of the following are reported at fair value? Debt investments. Equity investments. Both debt…

A: Debts investments are actually classified as available for sale and reported at fair value. Equity…

Q: how is it possible that the avoidable interest can exceed the actual interest

A: Interest Cost: The cost charged on the borrowings financed by the lender to the company is known as…

Q: How are deductions and losses different? How are they similar? Explain

A: Deductions: As deductions, the existing expenses made for the development of current period profits…

Q: What are the arguments for giving separate accountingrecognition to the conversion feature of…

A: The separate accounting for recognition is needed as convertible debenture has the feature of…

Q: How are gains and losses from extinguishment of a debt classified in the income statement? What…

A: Bonds payable: A legal contract for a long-term debt made between the lender and the beneficiary;…

Q: What factors should be consi

A: Debenture   A debenture is a type of debt instrument unsecured by collateral. Since debentures…

Q: Is unrealized loss deducted in marketable equity securities held as financial asset at fair value…

A: Yes ,unrealized loss reported  as component of other comprehensive income and marketable equity…

Q: What does the term noncontrolling interest mean?

A: This term is generally used when consolidated statement is prepared by the parent entity. There are…

Q: Identify special reporting issues related to derivative financial instruments that cause unique…

A:

Q: how to compute in simplest form the non controlling interest using fair value method and…

A: Non-Controlling Interest Non-controlling interest or minority interest situation occurs when an…

Q: Provide some examples of items that would be adjusted directly against equity, rather than being…

A: Shareholder's equity:   The amount remaining after subtracting company long term and short term…

Q: hich of the following is NOT a financial asset?

A: An asset is belongings or the resources of an individual, corporation, or country with the…

Q: document that facilitates

A: Solution:- Corporate charter is a legal document form creation of company. It is filed with…

Q: What transactions do you prefer to use negotiable instruments?

A: Negotiable instruments are written contracts whose benefit could be passed on from its original…

Q: What are some steps taken by both the FASB and IASB to move to fair value measurement for financial…

A: International Financial Reporting Standards: IFRS (International Financial Reporting Standards) is a…