User Account

All Pages

Explain the discount rate to be used

Assignment Help Financial Accounting
Reference no: EM132623853

Problem 1: When measuring a liability at present values, the discount rate to be used, according to paragraph 47 of AASB 137, is:

Option 1: the pre-tax rate that reflects the current market assessments of the time value of money and the risks specific to the liability

Option 2: the after-tax rate that reflects the current market assessments of the time value of money and the risks specific to the liability

Option 3: the pre-tax rate that reflects the current market assessments of the time value of money and the risks specific to the liability, and shall also reflect risks for which future cash flows have already been adjusted

Option 4: the pre-tax risk free rate

Problem 2: In determining the amount to be assigned to the equity component of a compound financial instrument, you must:

Option 1: adds the face value of the financial liability to the fair value of the compound financial instrument as a whole

Option 2: deducts the face value of the financial liability from the fair value of the compound financial instrument as a whole

Option 3: deducts the face value of the financial liability from the face value of the compound financial instrument as a whole

Option 4: deducts the fair value of the financial liability from the fair value of the compound financial instrument as a whole

Reference no: EM132623853

Questions Cloud

Why would some departments approve of a monthly budgets : You were surprised to hear that half of the managers liked this process. Why would some departments approve of a monthly budgets and others not
What has been written about your phenomenon : Conduct a search of the literature from nursing and other disciplines to see what has been written about your phenomenon. Based on your review of the.
Philosophy of science : How does the lens from which you view the world shape your approach to research inquiry?
Explain the methods of coaching : How would you analyse the business performance of the cafe against planned objectives?
Explain the discount rate to be used : Explain the discount rate to be used? In determining the amount to be assigned to the equity component of a compound financial instrument, you must
Explain the role benchmarking : How would you ensure that skilled labour is available to implement the plan? Explain how you will test performance management systems.
Calculate the price : Calculate the price of a $1.9 million bond issue under each of the following independent assumptions - Maturity 13 years, interest paid annually
Importance of quality to national interest of our country : Discuss how either good or poor quality affects you personally as a consumer. For instance describe experiences in which your expectations were met
Discuss some of the legal and ethical lessons : Discuss some of the legal and ethical lessons that can be learned from the Syphilis Tuskegee Study.

Reviews

Write a Review

Financial Accounting Questions & Answers

  Unfavorable total direct labor variance

Smith company had an unfavorable total direct labor variance. In this case it would NOT be possible for the direct labor price and usage variances, respectively, to be

  Values using absorption and variable costing relationships

Solving for Missing Values Using Absorption and Variable Costing Relationships- Kester Company had ending inventory cost of $5,000 under absorption costing. Ending inventory cost $3,400 under variable costing. Kester produced 16,000 units and sold 15..

  What is the amount of goodwill resulting

What is the amount of goodwill resulting from the business combination - On April 1, year 1, Dart Co. paid $620,000 for all the issued and outstanding common stock of Wall Corp.

  Discuss logical explanations for combination of variances

Laboda?'s Smart? Shawls, Inc., is a small business that Laboda developed while in college. She began? hand-knitting shawls for her dorm friends to wear while studying. Record the journal entries for the variances incurred. ?(Record debits? first, the..

  What is the sarbanes-oxley act

What is the SEC, and what is its role in protecting the integrity of financial statements prepared and disseminated by publically traded companies?

  Write a memo to mr borrow with the results of your research

Mr. Borrow wants to knowthe definitions of Collateral, Continuing involvement, financial asset, and Derecognize. Write a memo to Mr. Borrow with the results of your research.

  Compute the purchase price per pound for direct materials

Compute for SMP the following: Purchase price per pound for direct materials. Direct materials purchase-price variance.

  Analyse financial ratios using actual reported data

PACC6000 Financial Accounting Assignment, The University of Newcastle, Australia. To calculate and analyse financial ratios using actual reported data

  Prepare an income statement for jiminez inc

Prepare an income statement based on this information, being careful to include only those items that should appear in that financial statement.

  What amounts relative to income taxes does m&s report

How much of M&S's 2010 total provision for income taxes was current tax expense, and how much was deferred tax expense?

  Lifo method for tax accounting purposes

Under what conditions would a compnay want to use the FIFO method to account for inventory for financial reporting purposes and the LIFO method for tax accounting purposes? if is this allowed Why or Why not?

  Compute its margin of safety in dollars

Zhao Co. has fixed costs of $354,000. Its single product sells for $175 per unit, and variable costs are $116 per unit. If the company expects sales of 10,000 units, compute its margin of safety in dollars and as a percent of expected sales.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd