User Account

All Pages

What if the investor possesses a large percentage

Assignment Help Financial Accounting
Reference no: EM132707594

Fair value accounting is the practice of measuring assets and liabilities at their current market value. The fair value is the amount that the asset could be sold, or a liability settled for a value that is fair to both the buyer and the seller. The best way to determine the fair value of an asset is by listing the security on the exchange. Also known as mark-to-market, fair value accounting is one of the most widely recognized valuation standards that becomes increasingly important when the company is sold, or assets are acquired.

  • The primary object of the fair value method of accounting for an investment: The investor possesses only a small percentage of an investee and cannot expect to have a significant impact on the operations or decision-making of the investee. Since the shares are bought in anticipation of cash dividends or appreciation of stock market values, dividends received are accounted for as income and the investment is reflected at each balance sheet date at its fair value which is generally the market value at that date.

Problem 1: What if the investor possesses a LARGE percentage. How does the accounting change?

Reference no: EM132707594

Questions Cloud

What are the factors that make an applicant turn down a job : In a supported opinion, what are the factors that make an applicant accept or turn down a job? The response must be typed, double spaced.
What are the five factors that companies consider : What are the benefit, What are the five factors that companies consider when establishing their dividend policy? Briefly describe each one.
Write a report to paul mooney owner of starshots glamour : Mooney, the founder, and chief executive of Starshots, Write a report to Paul Mooney, the owner of Starshots Glamour Photography
Prepare the journal entry to record the issuance : Albert Corp. issued 2,000 shares of $50 par value preferred stock at $70 per share. Prepare the journal entry to record the issuance
What if the investor possesses a large percentage : Fair value accounting is the practice of measuring assets, What if the investor possesses a LARGE percentage. How does the accounting change?
Compute the carrying costs associated with service level : Angela knows that the carrying cost of BX-5 is 50 cents per unit per year. Compute the carrying costs associated with a 90%, a 95%, and a 98% service level.
What is the difference between asset and liability : What is the difference between asset and liability?
Discuss the benefits of performing an external audit : Discuss the benefits of performing an external audit on financial statements. Explain the threats to independence faced by the auditors
Market value of the equity-book co : Book Co. has 1.8million shares of common stock with a par (book) value of $1.05, retained earnings of $28.3 million, and its shares have a market value

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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