The conceptual framework indicates that there are two concepts of capital. Clarify  the two concepts in question.

Q: Why is it necessary to make a distinction between Capital and Revenue Receipts and Capital and…

A: Capital receipts: These receipts are income that is earned from the investment and financing…

Q: Describe the approaches for measurement of fair value.

A: When measuring fair value of fixed assets, intangible assets, specified financial assets or…

Q: What is the notion of capitalization effects and how does it work

A: The notion of capitalization effects and how does it work will be explained:

Q: Define the term an identical asset?

A: An identical asset is the group of similar assets which are individually not distinguishable and can…

Q: 1. What are gains and losses? Please explain and provide an example for both.

A: Income Statement - The income statement includes Revenue earned and losses incurred due to…

Q: What exactly is the analytic hierarchy process (AHP) and how can it be used to the process of making…

A: ANALYTIC HIERARCHY PROCESS: It is the method for managing and identifying, organizing the complex…

Q: Describe the basic approaches for determining an appropriate working capital.

A: Working capital is the sum of money that a business utilizes to pay for its ongoing expenses. In…

Q: You find capital in the same side of the balance sheet as liabilites because of ______________.…

A: From the business point of view, capital is also considered as a liability towards the owner…

Q: What is a capitalization rate? What are the different ways of arriving at this rate for an…

A: Capitalization rate: Capitalization rate is the projected rate of return percentage that a property…

Q: In general terms, what is the Capital AssetPricing Model (CAPM)? What assumptions weremade when it…

A: CAPM: The capital asset pricing model (CAPM) is a method utilized to determine a hypothetically…

Q: Explain the three factors that determine the intrinsic, or economic, value of an asset.

A: The intrinsic value of an asset is its fundamental worth or true value based on its cash flows,…

Q: Why should the capital expenditures be capitalized?

A: Capital Expenditures:   Capital expenditures are those which provide future economic benefits by…

Q: In order to determine whether an investment is visible, what factors should be considered?

A: For the evaluation of a task, no fixed steps that have to be taken. Numerous things should be…

Q: Under IFRS, how are investment properties subsequently measured? a) The cost…

A: International Accounting Standard 40 on Investment states that the investment property should be…

Q: ith the use of an example, briefly explain the main difference between the ex-ante and the ex-post…

A: Main Difference between ex-ante and the ex-post opportunity cost of capital: Ex-post risk is…

Q: What are the advantages and disadvantages of real assets?

A: The question is asking about the pros and cons of investing in real assets. Real assets are physical…

Q: Briefly discuss the differences between Modigliani and Miller’s theory of capital structure and the…

A: According to the M&M theory, a company's worth is unaffected by its capital structure or the…