FASB released Proposed ASU 2021-005 on September 15, 2021.  The name of the proposed ASU is “Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions”.  Comments are due by November 14, 2021.  The proposed ASU may be found on the FASB website or by following the links to the proposed ASU in the Codification.    Why did FASB issue this proposed ASU?    Who is affected by the amendments in this proposed update?   Summarize the main provisions of this proposed.      Summarize how the main provisions of the proposed ASU would differ from current GAAP and why they would be an improvement?   As of October 31, 2021 one comment letter had been submitted to FASB. Briefly summarize the opinion expressed in the comment letter.

Q: FASB Statement No. 133 requires that all derivative financial instruments be reported at their: a.…

A: Derivatives are a form of financial instruments which changes their value with change in interest…

Q: Discuss how IFRS 16 treats financial and operating leases in the financial statements. In what way…

A: IFRS 16 is an international standard that serves its objective for financial reporting of leases and…

Q: Under ASC Topic 840 and IFRS 16, FASB and IASB revised lease accounting rules to address off-balance…

A: Balance sheet is the statement in which the assets and liabilities including equity of the company…

Q: Explain the meaning and two [2]purposes of road showa as used in the preamble above.

A: A series of numerous meetings and presentations on various locations which is led by top management…

Q: When fair value is used in measuring assets in the financial statements, current GAAP provides…

A: (1) Full form of GAAP - Generally Accepted Accounting Principles. (2) It is a collection of the…

Q: how many critical audit matters were discusses in target's audit report in 2020?

A: An audit is an independent examination of financial information of any entity whether profit…

Q: hich of the following statement about expected vesting period agrees with IFRS 2?

A:

Q: What information about its pension plan must a publicly traded company disclose in its interim…

A: Pension is a retirement benefit which is generally provided by employers to their employees. Under a…

Q: Which of the following statements is true?(a) The fair value option requires that some types of…

A: Answer:   Option c.

Q: 18. n accordance with PFRS 9, an entity may reclassify Group of answer choices Financial assets…

A: concept reclassification of securities Equity securities Initially FVTPL or FVTOCI Cant be…

Q: From the SEC website or other sources, locate Daily Journal’s Form 8-K (filed July 3, 2014) related…

A: SEC: It is a federal government agency. The main responsibilities of the SEC are as shown below: 1.…

Q: How does IFRS 16 Leases will be affected by the changes in financial markets?

A: Lease: As per IFRS, it is the contract that gives right to use an asset for a period of time in…

Q: In case of a demerger of an APA applicant or signatory into two or more companies (persons), who…

A: Answer: APA is defined as advance pricing agreement. It is done between taxpayer and tax authority…

Q: Explain the disclosure requirements of the 1933 Act, including which securities and transactions are…

A: The securities act of 1933 is an act that has been passed after the market crash that took place in…

Q: Which of the following Institutions are compensated via commission after the transaction has been…

A:

Q: What guidance does the SEC give for disclosures regarding accounting policies used for derivatives?

A: Securities and Exchange Commission (SEC):   It is a government body established to safeguard the…

Q: The margin requirement is set by the ________. Select one: a. Federal Reserve b. SEC c. FDIC d. SIPC…

A: Margin requirement is an important concept in the world of investing and finance. It refers to the…

Q: Statement No. 133 Accounting for Derivative Instruments and Hedging Activities establishes…

A: In the statement of financial position, an entity recognizes all derivatives as assets or…

Q: Which of the following are exceptions for PFRS 9 application? CHOICES Contracts to buy or sell…

A: The  following are exceptions for PFRS 9 application?:: Contracts that were entered into and…

Q: Which Federal Law established that all newly issued security offerings traded on national exchanges…

A: Securities regulation is a crucial aspect of the financial markets, ensuring transparency and…

Q: Briefly describe how derivatives are accounted for according to the International Accounting…

A: Derivatives refer to a contract that takes place between two or more than two parties whose value…

Q: Describe the purpose(s) of various federal securities laws.

A: Security law is a group of regulation that are framed and govern for the  issuance of securities.…

Q: What are some SEC regulations regarding sales of new securities?

A: The question is based on the concept regulation by the Securities and Exchange Commission for issue…

Q: 1.In accordance with CFA standard V(B), in preparing a research report involving securities, the…

A: Both questions relate to CFA (Chartered Financial Analyst) standards V(B) and VI(A), which set forth…

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: PFRS 9

A: In accordance with PFRS 9, an entity may reclassify Answer :- Investments in equity instruments…

Q: Question 4: The retroactive adjustment to the beginning balance of retained earnings to correct the…

A: Q4. Ans. -P400 Reason - As other comprehensive income (OCI) includes unrealized gains and losses…

Q: How has the regulatory changed over the years (pre-2018 vs. the status quo

A: As we have known, they are regulatory changes over the years. Ten years ago, the ability to be in…

Q: ecurities would be classified as marketable securities in the current asset section of the balance…

A: Securities - Because investors have specific information demands, securities are available. In…

Q: The SEC requires a publicly traded company to disclose in its financial statements (Form 10-K) any…

A: Financial statements are defined as the records that are prepared by the business entities as per…

Q: What is the nature of the SEC guidance concerning the reporting of LIFO liquidations?

A:

Q: Required: 1. Identify whether each investment should be classified as a short-term or long-term…

A: Long Term Investment :— Investment Hold for More than 1 year.Short Term Investment:— Investment Hold…

Q: Which forms do most companies file with the SEC in connection with the offering of securities to the…

A: Going public typically refers to when a company undertakes its initial public offerings, by selling…

Q: Describe the specific calculations of EPS that U.S. GAAP requires that public companies report.

A: EPS means Earning per share. It indicates amount of income earned by a company expressed on a per…

Q: Explain the meaning and two (2) purposes of road shows as used in the preamble above.

A: The roadshow is a process carried out by underwriting companies to attract probable investors for…

Q: Access the FASB Accounting Standards Codification at the FASB website ( www.fasb.org ). Determine…

A:

Q: Compare and contrast the pronouncements for equity investments: SFAS No. 115 and International…

A: Equity Investment The initial and subsequent measurement of the Equity investment which can be made…

Q: 3. A recent issued demographic report indicates that there is a reasonable probability that ABC…

A: Under FASB ASC Section 450-20-25-2 contingency liability needs to be recorded as an expense if it is…

Q: (Students should visit the SEC website, www.sec.gov, for supplemental resources.) What is a private…

A: Debt securities: The financial instruments which are bought by investors, or corporations, or mutual…