Preferred method of asset and liability valuation

Assignment Help Cost Accounting

Reference no: EM13177559

The accounting standards refer to the preferred method of asset and liability valuation as ‘fair value'. A review of published financial statements indicates that ‘historic cost' is much more commonly used. Why do you think this is so? What is your recommendation?

Explain your answer by reference to the advantages and disadvantages of the several methods of valuation available to statement preparers

Reference no: EM13177559

Questions Cloud

Find the maximum height reached by the flare : The height , y meters, of an emergency flare fired upward from a small boat can by modelled by the function y= -5(x-4)squared+80, where x seconds is the time since flare was fired.

Consolidation worksheet for ogre ltd : Consolidation worksheet for Ogre Ltd and its controlled entity for the period ended 30 June 2012-12 and the consolidated statement of financial position of Ogre Ltd and its controlled entity as at 30 June 2012.

Determine the growth rate of the economy''s real gdp : Assume that population is 100 in year 1 and 102 in year 2. What is the growth rate of real GDP per capita? (Instructions: Round your answer to two decimal places.) The growth rate of the economy's real GDP per capita = %

Find an equation of the line passing : find an equation of the line passing throughout (-3,4) and parallel to the x-axis.

Preferred method of asset and liability valuation : The accounting standards refer to the preferred method of asset and liability valuation as ‘fair value'. A review of published financial statements indicates that ‘historic cost' is much more commonly used. Why do you think this is so? What is you..

Define the random variable : Let X be a continuous random variable with the PDF f and the CDF F. Assume that f(x) > 0 for all real numbers x. Define the random variable Y = F (X ). Show that Y is uniform in the interval [0, 1].

By what percentage did the price level rise : Suppose that in 1984 the total output in a single-good economy was 10,000 buckets of chicken and the price of each bucket of chicken was $10. In 2005 the price per bucket of chicken was $20 and 25,000 buckets were produced. Determine the GDP price..

Describe the results of the tests : Hypothesis Testing Paper Select a research issue, problem, or opportunity facing an organization that could benefit from hypothesis testing.

How much did he borrow at 16 percent : To start a business, Tom borrowed $20,000, part at 16% annual interest rate and part at 15%. If the total amount of interest on both loans is $3120, how much did he borrow at 16%?

User Account

All Pages