Explains why sometimes a company is required to report

Assignment Help Accounting Basics
Reference no: EM132880220

Problem - Alternative Valuation Methods - A friend who had a bookkeeping course in high school and who is currently a business major says, "I thought that assets were always reported at their historical cost on a company's balance sheet.

Recently, however, I heard several accounting majors discussing why a company is required (or elects) to report the fair value of an asset. I know that historical cost is the exchange price paid for an asset, so I can't understand why a company would report any other 'value' for the asset, or how that value could be measured."

Required - Write a short memo that briefly explains why sometimes a company is required (or elects) to report the fair value of an asset. Then define fair value and explain how it is measured.

Reference no: EM132880220

Questions Cloud

Provide an example of simpson paradox : Explain if it is possible for a statistical result that is present when data is put into groups, reverses or disappears when the data is combined.
Create portable forensic evidence kit for corporate security : Create a portable forensic evidence kit for corporate security investigations. Be sure to include all items that you will need to investigate a computer inciden
What decisions does gm have to make in regard to pricing : What decisions does GM have to make in regard to pricing and production? Consider an American automaker like GM with almost 100 production facilities
Discuss the ethical issues related to inflating the budget : Discuss if think ABC Manufacturing is properly using budget process to plan for next year expenses. Discuss the ethical issues related to inflating the budget.
Explains why sometimes a company is required to report : Write a short memo that briefly explains why sometimes a company is required (or elects) to report the fair value of an asset
Discuss ethical considerations in the budget process : You have just been hired at ABC Manufacturing, and your supervisor has invited you to sit in on today budget meeting. Discuss ethical considerations in budget.
Describe perspective by using an example from everyday life : Describe three of the perspectives and illustrate each perspective by using an example from everyday life. Which perspective do you think has the most relevance
Entrepreneurs brimming with optimism and enthusiasm : Entrepreneurs brimming with optimism and enthusiasm launch businesses destined for failure because their founders never stop to define a workable strategy
Prepare Hitt December balance sheet : The December 31, 2019, balance sheet accounts of Hitt Company are shown here in alphabetical order: Prepare Hitt's December 31, 2019, balance sheet

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

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