What is the fair value option? Explain how use of the fairvalue option reflects application of the fair value principle.

Q: What is the difference between contingent claims (options) and forward

A:

Q: which are the terms and conditions for OPTION CONTRACT WITH SIMULTANEOUS TITLE CLOSING?

A: The option contract is an obligation to purchase the property in the future at a fixed predefined…

Q: What is the effect of the fulfillment of the condition in a conditional obligation? resolutory…

A: A conditional obligation would seem to be one that is contingent on the occurrence of an unknown…

Q: What are the examples of Derivative Instruments? Define each examples and differentiate its nature…

A: Derivative is defined as the financial security along with the value, which used to be reliant or…

Q: Describe the approaches for measurement of fair value.

A: When measuring fair value of fixed assets, intangible assets, specified financial assets or…

Q: What is preemptive rights offering?

A: Preemptive rights:  A contractual clause that provides the shareholders with a right to purchase the…

Q: What is meant by actuarially fair prices? What conditions will make Arrow-Debreu prices actuarially…

A: Fairtrade Minimum Price is defined as the minimum price, which used to get paid through the…

Q: What is fair value accounting?

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

Q: Describe the accounting for the fair value option.

A: The fair value option allows the business to record its assets and liabilities at their fair value.…

Q: Share option compensation is what accounting subject?

A: Stock-based compensation: It is a way of paying employees, executives, and directors of a company…

Q: What method is used in the Evaluation Phase of fair value?

A: Income Approach

Q: Describe the levels of fair value hierarchy?

A: Fair value:   A value which is determined based on the market situation, business demand, and the…

Q: Why would anyone want to purchase an F or IF derivative type of investment?

A: Floater tranche(f) It refer to that type of security whose coupon rate copy the movement of index on…

Q: Why might refinancing be considered an alternative to a sale-leaseback?

A: Introduction: The given question is related to the concept of real estate finance and investments.…

Q: What are the two primary reasons for using preemptive rights?

A: The right of the shareholders of a company to buy additional shares in any future issue of the…

Q: Which tranche of CDOs offers maximum protection to the investment holder ?

A: A collateralized debt obligation also known as CDO is a credit structured finance product which is…

Q: What is meant by fair trade

A: Fair-trade is an agreement between a buyer and seller, in which seller has to provide good working…

Q: what does the voting rights of the Exchange mean?

A: Shareholder voting indicates the privilege given to shareholders to take part in the decision making…

Q: The use of the fair value option to account for Non - current liabilities is allowed by IFRS . Many…

A: Under fair value accounting the assets and liabilities are recorded in the financial statements at…

Q: What is the fair value option?

A: Fair value: Fair value is the price at which, both seller and buyer agree to exchange the asset. So,…

Q: The major difference between future and option arises from the different obligations of buyers and…

A: The option and future are used to hedge investment as well as to make money and it represents the…

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: What is the difference between fair value and market fair value?

A: Fair value refers to the value that represents the worth of a particular item. It is the value that…

Q: fair value of an

A: Fair value of ordinary share = Next dividend/(Required rate of return - Growth rate of dividend)

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

A: The answer has been mentioned below.

Q: What is USALI? Is it required under GAAP? Why would you use it?

A: USALI is Uniform System of Accounts for the lodging industry. The USALI states that all financial…

Q: Which are the Factors Affecting Own-versus-Lease Decisions?

A: Owning an asset involves purchase of the asset using own or borrowed sources of funds, whereas…

Q: ds used in fair

A: Fair value: Fair value refers to the amount receivable from sale of an asset, or payable on…

Q: What are the three types of valuation techniques can be used to measure fair value?

A: Fair value: Fair value refers to the amount receivable from sale of an asset, or payable on…

Q: Why does the exclusion of the preemptive right ordinarily inconsequential?

A: Preemptive Rights: It is a contractual clause that gives the shareholders right or allows them to…

Q: What is an Option Contract?

A: An Option contract is an agreement between two parties to buy or sell an underlying asset, at a…

Q: What is the role of Market Practice in Riba?

A: Riba (Islamic banking) It is charging of interest on loan/deposits. It is also a charge of an…

Q: What are the key elements of the definition of ‘fair value’? Explain the effects of inclusion of…

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

Q: What is an unasserted claim?

A: An unasserted claim or assessment is one in which the affected party or potential claimant has not…

Q: What is meant by a derivative investment

A: Derivative is a contract which allows its parties to buy/sell an underlying asset as per the…

Q: b) Briefly describe how the fair value model, as allowed by LAS 40, is applied.

A: As per IAS 40 Investment property,  Investment property is property held to earn rental revenue or…

Q: What are the different ways in which an offer terminates

A: Offer:- It is a conditional proposal which is made by a seller or buyer in which is committed to buy…