what is the impact if there is. any material misstatement in the goodwill valuation that is on whom and what? How the shareholders or the management decisions might affected owing to the material misstatement.

Q: How might one logically assess whether the acquisition of investment information or advice is…

A: To be economically justified it is necessary to find out the present value of benefits and compare…

Q: 1. Which is incorrect concerning the criterion of control by the enterprise of the intangible asset?…

A: The question is multiple choice question. Required  Choose the Correct Option.

Q: How do you view goodwill on the balance sheet - specifically, if certain levels of it would cause…

A: 1.) I see the goodwill on the balance sheet as synergies , which was estimated at the time of the…

Q: The analyst can obtain a better picture of the operating performance of an entity if percentage of…

A: The statement which is used to see the percentage change in one item in relation to other related…

Q: In unethical for a company to provide a sustainability report, but provide no assurance on the…

A: Ethics: Ethics are the code of conduct that every organization has and all have to follow these…

Q: What type of "event" results in goodwill being recorded on a company's balance sheet? How is…

A: Goodwill is an non-physical asset i.e. intangible. It shows the customer base in loyalty or brand…

Q: When it is impossible to determine whether a change is a change in estimate or a change in policy,…

A: As per relevant accounting rules, accounting policy refers to the type of valuation or method a…

Q: Which of the following is not part of the definition of control? ability to obtain substantigly all…

A: Control defines as the ability to obtain substantially all remaining benefits of the assets and to…

Q: Which of the following statements is false? a.    The monetary unit assumption is used under IFRS.…

A: International Financial Reporting Standards (IFRS): IFRS is a set of international accounting…

Q: Difference between business risk and audit risk?

A: Risk is the chances that actual will differ from expected results.

Q: Management can estimate the amount of loss that will occur due to litigation against the company. If…

A: Given, Management can estimate the amount of loss that will occur due to litigation against the…

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

A: Fair value A fair value means the actual price of an asset received if it is sold in the market. In…

Q: If an estimate of a contingent loss made in good faith turns out to be incorrect, the financial…

A: Contingent loss: It implies to a loss that may arise in the near future based on the happening or…

Q: On the basis of accountants’ heuristics and biases, how are accounting judgements regarding…

A: The evolution of preliminary accounting for internally created intangible assets, important to both…

Q: Under IFRS, the retrospective approach should not be used if: a.    retrospective application…

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

Q: What is the basis for the estimation of the fair value of the impaired operating resource? For…

A: An asset is said to be impaired if the carrying value or book value of asset is higher than the sum…

Q: ord increases and decreases in the fair value of an investment when accountants do not record…

A: In the case of property, plant and equipment, it has always been seen that they are maintained in…

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: What type of intangible asset is the goodwill account? What does it mean to the purchaser if the…

A: Goodwill refers to the intangible asset that arises from the purchase of another company or…

Q: Which one of the following situation where a performance obligation is satisfied over time ?  a-…

A: As per IFRS15 Performance obligation is satisfied over time if any of the following conditions are…

Q: In a business combination in which the total fair value of the identifiable assets acquired over…

A: As per IFRS 3  Business combination  The core Principles of business combination states that When…

Q: A company should record an asset called "Goodwill" when it purchases another company for an amount…

A: Goodwill is one of the intangible assets.

Q: Who bears the costs of appraisal if the fair value ascertained by the appraisers is higher than what…

A: A stockholder can exercise his appraisal rights in case of merger or acquisition of the corporation…

Q: Which among the following advocates for accounting all the prospective losses but leave aside all…

A: Solution: Conservatism convention  advocates for accounting all the prospective losses but leave…

Q: When the auditor wants to test the asset for impairment, the auditor would most likely be concerned…

A: Impaired assets are assets whose market value is lower than the value recorded on the company's…

Q: According to the principle of conservatism, when faced with uncertainty about the value of an item,…

A: In bookkeeping, the principle of conservatism, otherwise called the doctrine of prudence, is an…

Q: 1. Which statement about negative goodwill is true?   Negative goodwill should be recorded as a…

A: Negative goodwill : The goodwill is negative when the fair value of assets exceeds the amount…

Q: There are recurring attempts by management to justify marginal or inappropriate accounting on the…

A: Answer:   True

Q: The amount of subjectivity involved in establishing fair value estimates can be complex for…

A: GIVEN   The amount of subjectivity involved in establishing fair value estimates can be complex for…

Q: Why is it needed to reclassify financial asset when changing business model?

A: The question is related IFRS-9 "Financial Instruments". As per IFRS 9, reclassification is allowed…

Q: How does investments control deficiencies affect the development of audit procedures for…

A: Audit procedure refers to the steps that are performed through auditors in order to get all the…

Q: Which of the following statements regarding goodwill is false? A company must review its goodwill…

A: Solution: Following statement regarding goodwill are true: 1. A company must review its goodwill for…

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: According to PAS 18 Revenue, which of the following is not a criterion to be satisfied before…

A: As Per PAS 18, Criteria of Revenue recognition is as follows: The outcome of the transaction is…

Q: Discuss the overarching idea of Asset Liability Management and its key objectives. How does the…

A: Asset and liability management practices were first introduced by financial institutions during the…

Q: Answer of the following question related to these characteristics and constraints. Allied…

A: Accounting Principle:   They are the general rules and guidelines to be followed by companies in…

Q: acquisition and disposals were approved by people coming from the accounting department. Which…

A: The concept of segregation of duties considered to be a key internal control and its Paramount to…

Q: Which of the following is / are external indicator/s of impairment loss? Impact of legal environment…

A: The reduction or decline in the carrying worth of any asset due to its fair value can be referred to…

Q: Why is the audit of revenue recognition riskier for a new company

A: According to the GAAP, the companies should not claim any revenue until they have provided the…

Q: What serious consequences occur in an inaccurate estimate of asset needs?

A: Estimates of assets:   It is approximate value of assets of original value of assets which is used…

Q: This principle states that asset and income should not be overstated and liabilities and expense…

A: Accounting principles are a set of rules and guidelines that are required to be followed by entities…

Q: When the auditor wants to test the asset for impairment, the auditor would most likely be concerned…

A: Impairment of assets means reducing the book value  of assets when carrying amount is more than…

Q: How is the impairment test carried out for an associate?       A. The goodwill is impairment tested…

A: Introduction;- Impairment of Assets is generally identified in Balance Sheet items. Impairment can…

Q: Which of the following is not an external indication of impairment? An unexpected decline in the…

A: Asset may be impaired by various number of reasons. These may be internal or external to the…