Fair value

Exhibit 1 1. (Exhibit 1: Total Product) Between points A and B the marginal product of labor is: A) increasing. B) zero. C) falling. D) infinite. Ans: C Exhibit 2: Total Product and Marginal Product | Labor per Day | Total Products (units per period) | 0 | 0.0 | 1 | 1.0 | 2 | 3.0 | 3 | 7.0 | 4 | 9.0 | 5 | 10.0 | 6 | 10.7 | 7 | 11.0 | 8 | 10.5 | 2. (Exhibit 2: Total Product and Marginal Product) The marginal product of the second worker is: A) 1

framework for measuring fair value in IFRS. This is based on a number of key concepts including unit of account; exit price; valuation premise; highest and best use; principal market; market participant assumptions and the fair value hierarchy. Fair value is an important measurement on the basis of financial reporting. It provides information about what an entity might realize if it sold an asset or might pay to transfer a liability. In recent years, the use of fair value as a measurement basis for

In 2006, the FASB issued Statement No. 157, “Fair Value Measurements” (SFAS 157), and in 2007 issued Statement No. 159. The objective of SFAS 157 is to increase the consistency, comparability and transparency of fair value measurements used in financial reporting by establishing “a single authoritative definition of fair value, a framework for measuring fair value, and fair value financial statement disclosure requirements”(http://www.iasplus.com/en/binary/usa/0808fairvalueupdate.pdf). In 2011,

subsidiary’s net identifiable assets is based on the fair value of the subsidiary as a whole, rather than based on the cost of purchase at the acquisition date.   The acquisition date is the closing date that the purchaser obtains control of the acquired business. For example, the parent will still have full control of the entire subsidiary even if they purchased less than 100% of the net identifiable assets.   The parent incorporates the full fair value of the subsidiary in the consolidated financial

the impairment or disposal of long-lived assets. ASC 360-10 notes that long-lived tangible assets include land and land improvements, buildings, machinery and equipment, and furniture and fixtures. ASC 820, Fair Value Measurements and Disclosures (ASC 820) ASC 820, Fair Value Measurements and Disclosures,

|forests. | |1.IFRS IAS 41, Para 10-33 |Fair value with value changes recognized in profit or loss. | |2.U.S GAAP |Historical cost is generally used. However, fair value less | |ASC 905-330-35-3 |costs to sell is used for harvested crops and livestock held | |

involve variations to fair value measurement, goodwill recognition, and non-controlling interests. Purchase method The purchase method was recommended for all business combinations

At the beginning of the 21th century, the Financial Accounting Standards Board (FASB) started to realize the importance of fair value accounting as for a new measurement basis for asset and liability. The FASB believed the primary objective of financial reporting is to provide relevant and useful information about the future cash flow to current and prospective investors and creditors (Whittington, 2008). Since the historical cost accounting usually gives information about past transaction, not information

Income Statement while their value is reported in the Balance Sheet to deduce the value of the said business. The focus of this report is the International Accounting Standards Board’s preferred measurement basis

other valuation methods, due to word constraints I have focused primarily on Fair Value Accounting as an alternative to Historical Cost Accounting. Although Fair value accounting is a theoretically superior valuation methodology, there are several severe problems in its current application, due to lax regulations and ineffective methods of determining current values of non-current assets. These problems within Fair Value Accounting have ensured that most companies