What is Fair Value Accounting? An alternative approach to measurement that seeks to capture changes in asset and liability values over time. The International Accounting Standards Board (IASB) defines fair value as "... an amount at which an asset could be exchanged between knowledgeable and willing parties in an arms length transaction". Under the fair value measurement approach‚ assets and liabilities are re-measured periodically to reflect changes in their value‚ with the resulting change impacting
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IFRS 13 Fair Value Measurement applies to IFRSs that require or permit fair value measurements or disclosures and provides a single IFRS framework for measuring fair value and requires disclosures about fair value measurement. The Standard defines fair value on the basis of an ’exit price’ notion and uses a ’fair value hierarchy’‚ which results in a market-based‚ rather than entity-specific‚ measurement. IFRS 13 was originally issued in May 2011 and applies to annual periods beginning on or after
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Allfoods Corp. (Allfoods) acquired 80 percent of the outstanding common stock of Baked Beans Corp. in a business combination. After value consideration transferred value of tangible and intangible assets acquired‚ libilities assumed‚ I recommend doing this consolidation general entry for the business combination: Dr. | Land | $ 21‚000‚000 | | | | Dr. | PPE | $ 7‚000‚000 | | | | Dr. | IPR&D | $ 15‚000‚000 | | | | Dr. | Trademark | $ 3‚000‚000 | | | | Dr. | Goodwill
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1. Sadie incorporates her sole proprietorship with assets having a fair market value of $80‚000 and an adjusted basis of $100‚000. Even though § 351 applies‚ Sadie may recognize her realized loss of $20‚000. F True False 2. For § 351 purposes‚ stock warrants are included in the definition of "stock." F True False 3. In order to retain the services of Paige‚ a key employee in Byron’s sole proprietorship‚ Byron contracts
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Last Name___________________ First Name ________________ Section#____________________ 1. Diversified Industries sells electronic products in reusable containers. Customers pay a deposit for each container. The deposit is equal to the container’s cost. Customers receive a refund when the container is returned. During 2012‚ deposits collected on containers shipped were $350‚000. Deposits are forfeited if containers are not returned in 18 months. During 2012‚ $250‚000 was refunded and deposits of
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objective of accounting for transactions under share-based payment arrangements with employees is to recognize in the financial statements the employee services received in exchange for equity instruments issued or liabilities incurred and the related cost to the entity as those services are consumed. This Topic uses the terms compensation and payment in their broadest senses to refer to the consideration paid for employee services. 2. How many periods of EPS data must be presented? 260-10-45-7 EPS data
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cannot pay a note due that day. It is a $500‚000 note with $50‚000 accrued interest payable to Edsen‚ Inc. Edsen agrees to forgive the accrued interest‚ extend the maturity date to December 31‚ 2008‚ and reduce the interest rate to 4%. The present value of the restructured cash flows is $428‚000. Instructions Prepare entries for the following: (a) The restructure on Poore’s books. (5 points) (b) The payment of interest on December 31‚ 2007. (5 points) (c) The restructure on Edsen’s books
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The historical value of speeches in Thucydides In writing his history as a whole‚ it is fair to say that Thucydides has always been praised for his relative historical accuracy‚ be that due to his actual presence at events‚ his use of eyewitness testimony or his noted checking of facts. In style Thucydides kept his narrative sections rather impersonal thereby allowing the story to unfold itself. However‚ to then lay bare what stood behind the narrative‚ the moral possibilities‚ the mistakes
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following information for a one-year project‚ answer the following questions. Recall that PV is the planned value‚ EV is the earned value‚ AC is the actual cost‚ and BAC is the budget at completion. PV ¼ $ 23‚000 EV ¼ $ 20‚000 AC ¼ $ 25‚000 BAC ¼ $ 120‚000 a. What is the cost variance‚ schedule variance‚ cost performance index (CPI)‚ and schedule performance index (SPI) for the project? Cost Variance = EV-AC = $20‚000 - $25‚000 = -$5‚000 Schedule Variance = EV-PV = $20‚000 - $25‚000 = -$3
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generated 23.08% to Hilton’s revenue in 1998. This shows that the program also helped to boost up Hilton’s revenue. Since Hilton is running above breakeven‚ the revenue generated by the program is considered as profit generating revenue. Therefore‚ the value of the program is: ($158 – $750/365 days) x 8‚543‚800 nights = $1‚332‚364‚647 Since HHW runs the program not as a profit
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