Whether a company elects the fair value option for long-term liabilities and if it can report the unrealized gains and losses in other comprehensive income.

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Chapter 14, Problem 14.15Q

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To explain: Whether a company elects the fair value option for long-term liabilities and if it can report the unrealized gains and losses in other comprehensive income.

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If a company has elected the fair value option, where are gains and losses resulting from adjusting these accounts to fair value reported? Group of answer choices Unrealized Gains are reported as part of Other Comprehensive Income while Unrealized losses are reported as part of Net Income. Unrealized Gains and Losses are both reported as part of Net Income. Unrealized Gains are reported as part of Net Income, while Unrealized Losses are reported as part of Other Comprehensive Income. Unrealized Gains and Losses are both reported as part of Other Comprehensive Income.

Following IFRS, which statement is false? Group of answer choices The revaluation surplus account is a specific account reported as an unrealized gain in the statement of comprehensive income. If the revaluation initially increases the long-term operating asset's carrying value, the firm records the difference between the carrying value and the fair value (the unrealized gain) in the revaluation surplus account. The revaluation surplus account is a specific account reported in other comprehensive income (OCI) in the statement of comprehensive income. If a long-term operating asset's fair value decreases in subsequent accounting periods, after an earlier write-up, the firm reduces the revaluation surplus if it exists.

Following IFRS, which statement is false? Group of answer choices If the long-term operating asset's fair value increases in subsequent accounting periods, after an initial write-down, the firm reports the unrealized gain on the income statement, but only to the extent of previously recognized losses. The revaluation surplus account is reported as other comprehensive income on the statement of comprehensive income. If the revaluation initially decreases the long-term operating asset's carrying value, the firm reports the difference between the carrying value and fair value as an unrealized loss on the income statement. If the long-term operating asset's fair value increases in subsequent accounting periods, after an initial write-down, the firm reports the unrealized gain in the revaluation surplus account.

Answer 2

Question

Chapter 14, Problem 14.15Q

To determine

To explain: Whether a company elects the fair value option for long-term liabilities and if it can report the unrealized gains and losses in other comprehensive income.

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Answer 3

Question

Chapter 14, Problem 14.15Q

To determine

To explain: Whether a company elects the fair value option for long-term liabilities and if it can report the unrealized gains and losses in other comprehensive income.

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Answer 4

Question

Chapter 14, Problem 14.15Q

To determine

To explain: Whether a company elects the fair value option for long-term liabilities and if it can report the unrealized gains and losses in other comprehensive income.

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Answer 5

Chapter 14, Problem 14.15Q

To determine

To explain: Whether a company elects the fair value option for long-term liabilities and if it can report the unrealized gains and losses in other comprehensive income.

Answer 6

Chapter 14, Problem 14.15Q

To determine

To explain: Whether a company elects the fair value option for long-term liabilities and if it can report the unrealized gains and losses in other comprehensive income.

Answer 7

Chapter 14, Problem 14.15Q

To determine

To explain: Whether a company elects the fair value option for long-term liabilities and if it can report the unrealized gains and losses in other comprehensive income.

Answer 8

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Answer 11

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Whether a company elects the fair value option for long-term liabilities and if it can report the unrealized gains and losses in other comprehensive income.

Solution Summary: The author explains whether a company elects the fair value option for long-term liabilities and if it can report the unrealized gains and losses in other comprehensive income.

To explain: Whether a company elects the fair value option for long-term liabilities and if it can report the unrealized gains and losses in other comprehensive income.

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Chapter 14 Solutions