Considerations in determining if fair value accounting is the best decision for the company?
Considerations in determining if fair value accounting is the best decision for the company?
Homework Answers
Fai value accounting,
If we follow fair value accounting, there are some advantages and at the same time there are some disadvantages.
The advantage is that, the values shown in the financial statements are up to date reflecting the fair values and those are very much reliable to the intended user.
And the disadvantage is that, the company should evaluate each and every asset very frequently which is a huge task and involves a lot of investment and it also disturbs the regular working of the company.
The company should decide whether to follow fair value accounting or not after considering a lot of internal as well as external factors including governmental restrictions if any.
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Considerations in determining if fair value accounting is the
best decision for the company?
Essentially, two considerations ultimately determine the market and fair market value of an asset the future...
Essentially, two considerations ultimately determine the market and fair market value of an asset the future income stream that can be derived and the difference between that and The income stream from alternative Investment options The present value of a lump sum The future value of an annuity The best-case scenario based on Industry norms
Disadvantages of air value accounting . discuss disadvantages of fair value accounting. Discuss
Disadvantages of air value accounting . discuss disadvantages of fair value accounting. Discuss
The "fair value option" in accounting for long-term liabilities a) what is the fair value option...
The "fair value option" in accounting for long-term liabilities a) what is the fair value option to report liabilities? b) Do you think that the fair value option is a more relevant approach to valuing liabilities than amortized costs? Why or why not?
Disadvantages of fair value accounting in details.
Disadvantages of fair value accounting in details.
How do organizations use decision making to maximize value and what ethical considerations should be addressed"
How do organizations use decision making to maximize value and what ethical considerations should be addressed"
cost of $800,000, and a fair value of $720,000. The company believes that impairment accounting is...
cost of $800,000, and a fair value of $720,000. The company believes that impairment accounting is now E17.18 (LO 4) (Impairment of Debt Securities) Hagar Corporation has municipal bonds classi- fied as a held-to-maturity at December 31, 2020. These bonds have a par value of $800,000, an amortized b. What is the new cost basis of the municipal bonds? Given that the maturity value of the bonds is $800,000, should Hagar Corporation amortize the difference between the carrying amount and...
Which of the following best reflects the role played by productivity in determining the value that...
Which of the following best reflects the role played by productivity in determining the value that a location adds to a certain economic activity? Productivity is a minor factor in determining the value that a location adds to an activity. Productivity is the most important factor in determining the value that a location adds to an activity. Productivity is a very important factor in determining the value that a location adds to an activity. Productivity is the only factor in...
what are the contribution to relevant representing accounting information of fair value accounting.
what are the contribution to relevant representing accounting information of fair value accounting.
In determining whether a Contracting officer eas reasonable in evaluating an award decision, the GAO will...
In
determining whether a Contracting officer eas reasonable in
evaluating an award decision, the GAO will ask three questions.
Which one of the following is ***not*** one of these questions?
a. In the event that the decision is on a best-value
procurement, did the contracting officer use an unreasonable trade
off?
b. Was the decision-making process mechanical?
c. Did the Contracting Officer evaluate the proposal
correctly?
d. Did the Contracting Officer document the decision?
is on a process
Based on a review of literature, critically evaluate the accounting standard for fair value accounting.
Based on a review of literature, critically evaluate the accounting standard for fair value accounting.
Essentially, two considerations ultimately determine the market and fair market value of an asset the future income stream that can be derived and the difference between that and The income stream from alternative Investment options The present value of a lump sum The future value of an annuity The best-case scenario based on Industry norms
cost of $800,000, and a fair value of $720,000. The company believes that impairment accounting is now E17.18 (LO 4) (Impairment of Debt Securities) Hagar Corporation has municipal bonds classi- fied as a held-to-maturity at December 31, 2020. These bonds have a par value of $800,000, an amortized b. What is the new cost basis of the municipal bonds? Given that the maturity value of the bonds is $800,000, should Hagar Corporation amortize the difference between the carrying amount and...
In
determining whether a Contracting officer eas reasonable in
evaluating an award decision, the GAO will ask three questions.
Which one of the following is ***not*** one of these questions?
a. In the event that the decision is on a best-value
procurement, did the contracting officer use an unreasonable trade
off?
b. Was the decision-making process mechanical?
c. Did the Contracting Officer evaluate the proposal
correctly?
d. Did the Contracting Officer document the decision?
is on a process
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