When using the fair value method, we adjust the reported amount of the investment for changes in fair value after its acquisition. How is the change in fair value reflected in the income statement?

Q: receivables not measured initially at their transaction price are measured initially at a. fair…

A: Financial Asset or Receivables: The financial Asset or Receivables is measured initially at fair…

Q: How might one logically assess whether the acquisition of investment information or advice is…

A: To be economically justified it is necessary to find out the present value of benefits and compare…

Q: How will we recognise any fair value gain arising from a change in fair value of an investment…

A: Investment Property:   An investment property is a property in the form of land or building that are…

Q: How can we determine the period necessary to recover both the capitalinvestment and the cost of…

A: The Payback period (PBP) determines how long it would take a company to recover the investment. PBP…

Q: The amount of gain (loss) on sale and leaseback transaction is: Group of answer choices The…

A: Sales and lease back transaction refers to the transaction where an asset is sold by the seller to a…

Q: If the sale price executes at the price you specified, what would be the total loss, excluding…

A: Sales price when executed at the price specified will be equal to the breakeven price.  Break even…

Q: fair value model for investment property differ from the revaluation model for PPE

A: Fair value model and revaluation model are methods of valuation of non-current assets as per…

Q: According to the historical cost principle, assets are measured at the exchange price at the time…

A: Introduction: As per the historical cost principle is one of basic accounting principle, is a…

Q: How much gain or loss will Bill recognize on the distribution? What is Bill's basis in the inventory…

A: The calculation of gain or loss on distribution and basis in inventory and capital asset is shown…

Q: Which of the following is not a condition that must be satisfied before interest capitalization can…

A: Capitalized Interest: Interest is usually paid on the amount borrowed and it is shown as an expense…

Q: Explain how electing the fair value option and how impairment recognition affectaccounting for…

A: Definition: Impairment: It is a situation that arises when the carrying value of the investment…

Q: ing the investment is appropriately recognized as financial assets at amortized cost: Determine the…

A: Initial investment is the amount required to start a business or a project. It is also called…

Q: Which of the following is not a condition that must be satisfied before interest capitalization can…

A: Option b is the correct answer because the other three options are the conditions that should be…

Q: why does fair value seeking for an acquisition?

A: Reasonable worth is a term with a few implications in the monetary world. In contributing, it…

Q: GAAP requires trading and available-for-sale investments to be reported at their Group of answer…

A: REASON AS PER GAAP , TRADING AND AVAILABLE - FOR - SALE INVESTMENTS TO BE REPORTED AT THIER FAIR…

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: What do statutes and accounting rules mandate about assessing an asset's span of economic value?

A: Accounting is primarily concerned with identifying, recording, measuring, summarizing transactions…

Q: When a group of assets is acquired for a lump sum price, the total cost should be allocated to the…

A: As per IAS 16 Property plant and equipment, When a group of assets are acquired for a lumpsum…

Q: Depreciation is a valuation process that results in the report-ing of the fair value of the asset.”…

A: Depreciation is a form of non-cash expenditure which represents the normal wear & tear and…

Q: Asset-Based approach in valuation

A: Assets are the future economic benefit of the company that is sacrificed in paying off the debt and…

Q: When disposing of an available-for-sale investment, where is the gain or loss on disposal reported…

A:

Q: What is the treatment of any gain on a subsequent increase in the fair value less cost of disposal…

A: Subsequent will increase in truthful price. A gain for associated consequent increase in truthful…

Q: Explain Valuation and how can it be useful for determining

A: Valuation is to know how much is assets worth according to market or deciding fair value of assets.…

Q: What are the reporting issues in a sale with a repurchase agreement?

A: Repurchase agreement: A form of short term borrowing for dealers in government securities is called…

Q: A choice of different measurement models can be applied to investment property, namely: the fair…

A: Investment property is the property which is held by the company or by any business which has been…

Q: Assets acquired ina lump-sum purchase are valued based on: a. Their assessed valuation. b. Their…

A: As per IAS 16, when more than one item of property, plant, and equipment is purchased for a…

Q: In an accretion/dilution analysis of an acquisition, if the purchase price exceeds the book value of…

A: Accretion / Dilution Analysis of Acquisition Acquisition of the companies means the taken over the…

Q: In an accretion/dilution analysis of an acquisition, if the purchase price exceeds the book value of…

A: Accretion / Dilution Analysis of Acquisition Acquisition of the companies means the taken over the…

Q: How should acquisition related costs such as due diligence and legal costs be accounted for?…

A: As per IFRS3, Acquisition costs such as Advisory cost, Accounting, and due diligence cost, Legal…

Q: Why is the reporting of investments and fair value required? Justify your response.

A: Investment refers to the deposits made in securities to earn a regular income and capital…

Q: A right of use asset is initially measured at costs and subsequently measured using the  A. Cost…

A: An asset is the resource owned by the company for using it in the future.

Q: right of use asset

A: Correct Answer :- C Sale price

Q: Why would an investor apply the Fama-MacBeth Method in asset pricing assumptions?

A: The Fama–MacBeth method in asset pricing is used to estimate different parameters for asset pricing…

Q: A gain on the disposal of an asset indicates that the asset was sold for more than Its fair value.…

A: Lets understand the basics. When there is sale happens of asset then there is profit or loss arise.…

Q: Valuing assets at the amount of cash or equivalents paid or the fair value of the consideration…

A: The elements of financial statements which contain the financial information about an organization…

Q: In your own words, briefly explain a 'qualifying asset' and how we report exchange rate differences…

A: The question is related to Borrowing Cost. As per Borrowing Cost there are two types of Assets 1.…

Q: What is an impairment loss?   A ) The amount by which the carrying amount of an asset exceeds the…

A: An impairment loss is a recognized decrease in the par value of an asset caused by a deterioration…

Q: Distinguish between the “cost model” and “fair value” model of accounting for investment property.

A: Investment property is land or a building (including a part of a building) or both that is: →held to…

Q: As a result of the transaction, what is the effect on the profit or loss? what is the cost of the…

A: On the occasion of disposal/exchange/sale of an asset, the net income of the entity is impacted by…

Q: When an asset is acquired and a note payable is assumed, explain how acquisition cost of the asset…

A:

Q: According to historical cost principle, the assets and liabilities should be reported (tick…

A: Assets and liabilities are the part of the balance sheet of a company. They help in determining the…

Q: If an asset is sold at a gain, why is the gain deducted from net income when computing the netcash…

A: Statement of cash flows: Statement of cash flow is a financial statement that shows the cash and…

Q: The generally accepted accounting principle that supports recording the value of a property at the…

A: Monetary principle says that a business should only record transaction if it is measured in monetary…