What are the factors contributing to the trend toward fair value accounting?

Q: How is a financial statement under IFRS different from

A: Solution- In IFRS you need to provide Other Comprehensive Income Statement also in addition to…

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

A:

Q: The use of fair value to account for debt investments allows for more relevance of accounting…

A: Step 1 Fair valuation concept is universally accepted by all of the worldwide regulating accounting…

Q: Is there a consequence for reported profit or loss if a particular financial instrument, for…

A: Equity Stock represents the ownership in the company. Equity shareholders have the residual claim on…

Q: Describe the accounting applications of present value techniques.

A: Present value: This is the amount of future value reduced or discounted at a rate of interest till…

Q: In what way may the use of percentage depletion violatesound accounting theory?

A: Depletion: Depletion is defined as the reduction in the value of natural resources due to its…

Q: What is “fair value”? Consider whether it is really helpfulwhen reporting financial results. Give…

A: Fixed assets: These include all the assets that are of tangible nature and have an expected useful…

Q: Discuss the accounting problems associated with interest capitalization.

A: Interest capitalization: Capitalization interest is the cost of funds that are used to finance for…

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 Options to Report Liabilities at Fair Value.

A: Introduction FASB introduces Fair Value Options to report assets and liabilities in fair value,…

Q: How did you decide whether the situation is a profit or a loss?

A: A profit and loss (P&L) statement is a financial statement that details the revenues,…

Q: You and your colleagues Yusuf a Accounting. You were discussin following: - The total fair value of…

A: When a company is substantially acquired by another company, its accounts are consolidated with the…

Q: what are the possible violation of financial reporting protocols ?

A: Financial Statements: Financial statements are formal records of the monetary activities and…

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

A: In deliberations prior to issuance of SFAS 160 "Non controlling interest in consolidated financial…

Q: explain how the idea of value creation under stakeholder theory differs from that under positive…

A: Here discuss about the details of the difference between the stakeholders theory with the positive…

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

A: Meaning of fair value option:

Q: What is the difference between business risk and financial risk?

A: Risk Analysis: The risk analysis is defined as the process of recognizing the potential problems…

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

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: Overall do you agree or disagree with the argument that financial statements should be stated as…

A: Historical cost refers to the original purchase cost of an asset whereas fair value is an estimate…

Q: Fair value is a more relevant measure to use in Financial Reporting than Historical Cost. Discuss

A: Introduction: Fair value accounting refers to the practice of valuing your company's liabilities and…

Q: In relation to investments and fair value, what are the two categories of investments that companies…

A: Investment: It refers to the process of using the currently held excess cash to earn profitable…

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: What are financial obligations? How they can be overcome?

A: Liabilities:The claims creditors have over assets or resources of a company are referred to as…

Q: Are the use of non-GAAP financial measures ethical?

A: Generally Accepted Accounting Principles (GAAP): Generally Accepted Accounting Principles are the…

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: What are the ethical considerations in making subjective valuations of these complex…

A:

Q: fair value gain? And what effect it has on Balance sheet?

A: The balance sheet includes the assets, liabilities, and stockholders' equity of the company.

Q: How shall an entity subsequently measure financial liabilities?  Is IFRS measurement of financial…

A: Financial liabilities can be measured at amortized cost by using effective interest method and it…

Q: Why is the reporting of investments and fair value required? Justify your response.

A: Investment refers to the deposits made in securities to earn a regular income and capital…

Q: How does IFRS differ from U.S. GAAP with respect to using the equity method?

A: Equity method:

Q: What is "constructive receipt doctrine? Discuss What is "economic benefit doctrine? Discuss

A: Constructive receipt doctrine: According to constructive receipt doctrine policy, the taxpayer…

Q: What are debt issue costs and how should they be reported?

A:

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

A: Stockholders’ equity: The claims of owners on a company’s resources, after the liabilities are paid…

Q: Comment on the statement that materiality is in the eye of the beholder. How does this statement…

A: In accounting, materiality relates to the significance of any transaction or accounts. It is one of…

Q: Why is the application of fair value principle in measuring the financial position less objective…

A: the application of fair value principle in measuring the financial position is less objective than…

Q: How the equity method accounting rules work?

A: Step 1 Equity method accounting is used for inter-corporate investments. It is used when the…

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 is agency relationship and how it gives  rise to agency cost of equity?

A: Introduction: Equity is nothing but a financial stake in a company. It includes shares owned by…

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: what are the examples of Items that can  be adjusted directly against equity rather than including…

A: Profit or loss account is a revenue account, whereas the equity account is a capital account. Equity…

Q: Provide some example of items which would be adjusted directly against equity rather than being as…

A: Stockholders’ equity: The claims of owners on a company’s resources, after the liabilities are paid…

Q: What can be understood from hedge accounting?

A:

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…