Intermediate Accounting
1st Edition
ISBN: 9780132162302
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Chapter 16, Problem 1JC
To determine
To explain: The decisions and judgments made when determining whether an investing asset has been impaired and whether the area of investing asset impairments more of an objective or subjective area of financial reporting.
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Students have asked these similar questions
What is the meaning of the term “an impairment loss of an asset” specified in accounting and the International Accounting Standards (IAS)/International Financial Reporting Standards (IFRS)?
Which of the following is most accurate in describing the measurement of assets and liabilities?
a. Fair value should be used as often as possible.
b. Assets are marked at historic cost, especially for U.S. GAAP, and liabilities are recorded at present value.
c. A number of different methods are allowed for calculating asset and liability values.
Which of the following is not a category of financial assets under GAM?
Group of answer choices
A.Held to maturity investments
B.Available for sale financial assets
C.Financial asset at fair value through other comprehensive income
D.Loans and receivable
Chapter 16 Solutions
Intermediate Accounting
Ch. 16 - Prob. 16.1QCh. 16 - Is reporting an investment at its cost considered...Ch. 16 - Prob. 16.3QCh. 16 - Prob. 16.4QCh. 16 - Prob. 16.5QCh. 16 - Prob. 16.6QCh. 16 - What categories can managers use to classify...Ch. 16 - When is the equity method of accounting for...Ch. 16 - Prob. 16.9QCh. 16 - Can companies apply the fair value option to all...
Ch. 16 - What is the fair value hierarchy for investment...Ch. 16 - Prob. 16.12QCh. 16 - Prob. 16.13QCh. 16 - Prob. 16.14QCh. 16 - Prob. 16.15QCh. 16 - Prob. 16.16QCh. 16 - Prob. 16.17QCh. 16 - Deutsch Imports has three securities in its...Ch. 16 - Prob. 16.2MCCh. 16 - Prob. 16.3MCCh. 16 - Prob. 16.4MCCh. 16 - Prob. 16.5MCCh. 16 - Prob. 16.6MCCh. 16 - Prob. 16.7MCCh. 16 - Prob. 16.1BECh. 16 - Prob. 16.2BECh. 16 - Debt Investments, Trading. Using the information...Ch. 16 - Prob. 16.4BECh. 16 - Prob. 16.5BECh. 16 - Prob. 16.6BECh. 16 - Prob. 16.7BECh. 16 - Prob. 16.8BECh. 16 - Notes Receivable. Aaron Anatole accepted a...Ch. 16 - Prob. 16.10BECh. 16 - Prob. 16.11BECh. 16 - Prob. 16.12BECh. 16 - Debt Investments. Impairments. IFRS. For each debt...Ch. 16 - Prob. 16.14BECh. 16 - Prob. 16.15BECh. 16 - Prob. 16.1ECh. 16 - Prob. 16.2ECh. 16 - Prob. 16.3ECh. 16 - Prob. 16.4ECh. 16 - Prob. 16.5ECh. 16 - Prob. 16.6ECh. 16 - Debt and Equity Investments, Available-for-Sale...Ch. 16 - Prob. 16.8ECh. 16 - Prob. 16.9ECh. 16 - Prob. 16.11ECh. 16 - Equity-Investments, Equity Method. Book Value of...Ch. 16 - Prob. 16.13ECh. 16 - Prob. 16.14ECh. 16 - Notes Receivable. Each of the following three...Ch. 16 - Prob. 16.16ECh. 16 - Prob. 16.17ECh. 16 - Prob. 16.18ECh. 16 - Prob. 16.19ECh. 16 - Prob. 16.20ECh. 16 - Prob. 16.21ECh. 16 - Prob. 16.22ECh. 16 - Prob. 16.23ECh. 16 - Prob. 16.1PCh. 16 - Debt Investments, Trading. Freder Software Group...Ch. 16 - Prob. 16.3PCh. 16 - Equity Investments, Readily Determinable Fair...Ch. 16 - Prob. 16.5PCh. 16 - Prob. 16.6PCh. 16 - Prob. 16.7PCh. 16 - Prob. 16.8PCh. 16 - Prob. 16.9PCh. 16 - Equity Investments, Equity Method, Fair Value...Ch. 16 - Prob. 16.11PCh. 16 - Prob. 16.12PCh. 16 - Prob. 16.13PCh. 16 - Prob. 16.14PCh. 16 - Prob. 16.15PCh. 16 - Prob. 16.16PCh. 16 - Prob. 16.17PCh. 16 - Prob. 1JCCh. 16 - Prob. 2JCCh. 16 - Prob. 1FSACCh. 16 - Prob. 1SSCCh. 16 - Prob. 1BCCCh. 16 - Prob. 2BCC
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- Analyze the impact of differences between IFRS and U.S. GAAP in asset recognition and measurement rules on financial statements. You may focus on Inventories; PPE; Investment Property; Biological Assets; Impairment of Assets; Intangible Assets; Business combination and consolidated financial statements; and Borrowing costs.arrow_forwardIn accordance with the International Accounting Standards (IAS)/International Financial Reporting Standards (IFRS) developed by the International Accounting Standards Board (IASB), assets of what types are depreciable or amortisable, generally?arrow_forwardUse U.S. GAAP to determine how to subsequently measure the ten financial assets in requirement 1. Three choices of measurement basis are amortized cost, fair value through other comprehensive income, and fair value through profit or loss. Feel free to make an assumption and be sure to provide justification for your answer.arrow_forward
- What is the meaning of the terms ‘depreciation’, ‘amortization’, and ‘depletion’ specified in accounting and the International Accounting Standards (IAS)/International Financial Reporting Standards (IFRS)?arrow_forwardCan you explain the importance of the correct determination of an asset’s value and its effect on one of the financial statements.arrow_forwardWhy is IAS 36 Impairment of Asset not applied to an investment property measured under the fair value model in accordance with IAS 40 Investment Properties? Provide answers to the questions raised by the finance assistant in accordance with relevant accounting standards.arrow_forward
- Question 1. Which of the following represents the fundamental accounting oquation used in a business" Balance Sheel? (A) Assets + Liabilitles = Equity (B) Assets = Equity - Liabilities (C) Assets- Liabilities = (D) Assets + Liabilities = Equity (E) None of the above (F) Choices (B) and (C) are correctarrow_forwardWhich statement is incorrect regarding reclassification of financial assets? a) Reclassifications to FVTPL measurement category result to amounts recognized in profit or loss. b.)The effective interest rate is determined on the basis of the fair value of the asset at the reclassification date when an entity reclassifies a financial asset out of FVTPL measurement category. c.) The effective interest rate and the measurement of expected credit losses are not adjusted as a result of the reclassification from AC measurement category to FVTOCI and vice versa. d.) All reclassifications out of FVTOCI measurement category result in ‘reclassification adjustmarrow_forwardBrief Exercise 9-18 The standard setters identify three approaches to accounting for the impairment of financial asset investments: an incurred loss model, an expected loss model, and a fair value model. Identify which models are required to be used by enterprises applying (a) ASPE, and (b) IFRS. (a) ASPE (b) IFRSarrow_forward
- Explain the meaning of an impairment of an asset. Provideseveral examples. What accounting event should occurwhen an asset has become substantially impaired?arrow_forwardWhat is the purpose of recognizing depreciation on the financial statements? Is it designed to report PPE at fair value on the balance sheet?arrow_forwardWhich of the following approaches is used to determine the recognition of an impairment loss of financial assets? Select the best answer. a. O An approach that reflects the losses expected over the contractual life of the asset b. A loan is impaired if it is more likely than not that a creditor will be unable to collect all amounts due. c. A dual-measurement expected credit loss approach that is based on a financial asset's credit risk at inception and changes in credit risk from inception, as well as the applicability of certain practical expedients d. O Present value of contractual cash flows approacharrow_forward
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