When fair value is used in the measurement of assets in the financial statements, current GAAP provides the following references as basis of fair value except Price in an active market Price based on the assessed value of governmental bodies Price in a more recent transaction Price taken from industry or sector benchmarks

When fair value is used in the measurement of assets in the financial statements, current GAAP provides the following references as basis of fair value except Price in an active market Price based on the assessed value of governmental bodies Price in a more recent transaction Price taken from industry or sector benchmarks

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity

Section: Chapter Questions

Problem 1MC: A donated fixed asset (from a governmental unit) for which the fair value has been determined should...

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When fair value is used in measuring assets in the financial statements, current GAAP provides following references as basis of fair value, except Price in active market Price in recent transaction Price taken from industry or sector benchmarks Price based on assessed value of government bodies
Match the element to the correct definition according to the International Accounting Standards Board's Conceptual Framework for Financial Reporting? Element Definition A resource controlled by the entity as a result of past events and from which future economic benefits are expected to flow to the entity. Expense Liability The residual interest in the assets of the entity after deducting all its liabilities. A present obligation of the entity arising from past events, the settlement of which is expected to result in an outflow from the entity of resources embodying economic benefits. Asset Decrease in economic benefits during the accounting period in the form of outflows or depletions of assets or incurrences of liabilities. Equity
A donated fixed asset （from a governmental unit) for which the fair value has been determined should be recorded as a debit to Fixed Assets and a credit to: a. Contributed Capital b. Retained Earnings c. Deferred Income d. Other Income
Which of the following statement best defines an asset? a. An asset is a resource owned by the entity with a financial value b. An asset is resource controlled by the entity from which future economic benefits are expected to be generated c. An asset is a resource controlled by an entity because of past events d. An asset is a resource controlled by an entity as a result of past events from future economic benefits are expected to be generated
For each class of financial assets and liabilities, the entity shall disclose the fair value of that class of financial assets and liabilities in a manner that allows comparison with the corresponding carrying amount on the balance sheet. Why do you think that these disclosures contribute to improving the quality of information for users of financial statements? Comment critically
How should research and development expenditure be dealt with in an entity's financial statements? a- Research expenditure should always be written off as an expense but development expenditure should always be capitalised as an intangible asset b- Research and development expenditure should always be written off as an expense c- Research expenditure should always be written off as an expense but development expenditure should be capitalized as an intangible asset if it satisfies certain conditions d- Research and development expenditure should always be capitalised as an intangible asset
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Please explain and analyze the effect of major differences between IFRS and U.S. GAAP related to the financial reporting of a specific category of account (e.g. intangibles, biological assets, goodwill, non-controlling assets).
How shall an entity subsequently measure financial liabilities? Is IFRS measurement of financial liabilities similar to that of U.S. GAAP? Also briefly describe the requirements regarding an option to designate a financial liability at fair value through profit and loss. Q: Does U.S. GAAP allow fair value option for financial assets and liabilities? Q; What is “own credit” issue related to financial liabilities measured at fair value through profit and loss? Q: How does IFRS 9 address this “own credit” issue?
How does the Conceptual Framework define an asset? Select one alternative A resource to which an entity has a future commitment as a result of past events and from which future economic benefits are expected to flow from the entity A resource controlled by an entity as a result of past events and from which future economic benefits are expected to flow to the entity A resource owned by an entity as a result of past events and from which future economic benefits are expected to flow to the entity A resource over which an entity has legal rights as a result of past events and from which economic benefits are expected to flow to the entity
ANSWER PLEASE
The concept of capital maintenance chosen by an entity shall determine the accounting model used in the preparation of its financial statements. TRUE OR FALSE