AAP should require fair value measurement of either more o

Q: what is the most likely fair value method to utilize the Discountd Cash Flow model?

A: Discounted Cash Flow: The discounted cash flow model,estimates the intrinsic value of a security…

Q: 4. Relevance of information provided by a measurement basis is affected by: 1. The sensitivity of…

A: The usefulness of data generated by a measurement system is determined by how it affects financial…

Q: In general it argued that the lower of cost of market rule is supported most closely by which of the…

A: The lower of cost or market rule is related to valuing the inventory, the company should value the…

Q: Explain the effect of issuance cost on firm value.

A: There are issues cost associated with debt and equity that has impact on  value of firm.

Q: Must two assets with the same fundamental characteristics (e.g. same payment stream, same credit…

A: Assets are valued on the basis of profit,cash flow and associated risk.But there value may not be…

Q: What is the current market view on USD/JPY? (Will it appreciate and which depreciate? and why?)

A: USD/JPY will be reflecting the exchange rate of Japanese currency with respect to 1 American dollar.…

Q: Which of the following statements is true?(a) The fair value option requires that some types of…

A: Answer:   Option c.

Q: What if noncurrent asset is not a subtitle I can chose from? Is there another heading I can use or…

A: The non-current assets means those assets which are not current assets, i.e. they would benefit the…

Q: The majority of financial instruments are valued using:  Group of answer choices  fair value…

A: Financial instruments are the assets that can be traded. Most of the financial instruments provide…

Q: What are the main criticisms of the Capital Asset Pricing Model (CAPM)? What does the empirical…

A: Capital Asset Pricing Model is a financial theory stating the linear relationship between required…

Q: In general terms, how would a change ininvestment opportunities affect the payoutratio under the…

A: Answer: In the residual dividend policy, the distribution is calculated after the company’s spending…

Q: What is an anomaly to an asset pricing model? For example explain what is pricing anomaly to CAPM…

A: An anomaly is referred when there is a considerable difference between the values computed by using…

Q: All assets are presented on the balance sheet at their fair market values since this is the most…

A: The Answer

Q: . Which of the following statements is true? a.    The fair value option requires that some types of…

A: The fair value option allows, but does not require, that some types of financial instruments be…

Q: What is the fair value option? Briefly describe the controversyof applying the fair value option to…

A: Meaning of fair value option:

Q: hat is the current market view on AUD/USD? (Will it appreciate and which depreciate? and why

A: The exchange rate depends on the interest rate in the market and inflation in the market and goes up…

Q: What information does the payback convey that is absent from the other capitalbudgeting decision…

A: Payback period method is a traditional method used in capital budgeting decisions which is used to…

Q: What are the quantitative disclosures that must be done by lessor?

A:

Q: Does GAAP distinguish between fair values that are readily determinable from current market prices…

A: Generally Accepted Accounting Principles (GAAP):  A set of accounting principles, practices and…

Q: Explain Valuation and how can it be useful for determining

A: Valuation is to know how much is assets worth according to market or deciding fair value of assets.…

Q: The Capital Asset Pricing Model is usually adopted in a variety of circumstances but it does have…

A: Capital Asset Pricing Model: The relationship between expected return of a stock  and systematic…

Q: The fair value is the value of an asset as it appears on the balance sheet. O True O False

A: The balance sheet is one of the financial statements of the business, which represents the financial…

Q: How would discounted cash flow be applied to fair vaue valuations?

A: Valuation of a company means to determine the intrinsic value of a company or the value which the…

Q: What is the current market view on GBP/USD? (Will it appreciate and which depreciate? and why?)

A: The exchange rate are dependent on the the market factors and other factors which are point of…

Q: What is the default classification for an equity investment? A  Fair value through profit or loss…

A: Answer:-  Equity investment meaning:- Equity investment is purchasing the shares directly from the…

Q: What is the difference between fair value and market fair value?

A: Fair value refers to the value that represents the worth of a particular item. It is the value that…

Q: What are the ethical considerations in making subjective valuations of these complex…

A:

Q: fair value gain? And what effect it has on Balance sheet?

A: The balance sheet includes the assets, liabilities, and stockholders' equity of the company.

Q: How does the fair value model differ from the revaluation model?

A: The difference between fair value and revaluation method arises when there is gain in the value of…

Q: Why would an investor apply the Fama-MacBeth Method in asset pricing assumptions?

A: The Fama–MacBeth method in asset pricing is used to estimate different parameters for asset pricing…

Q: How do U.S. GAAP and IFRS differ in their use of present values when measuring contingent…

A: Contingent Liability Contingent liability is one form of liability that arises based on a particular…

Q: What factors should be consi

A: Debenture   A debenture is a type of debt instrument unsecured by collateral. Since debentures…

Q: The DPBP is ideal as a stand-alone measure of economic worth. True or False?

A: Discounted Pay-Back Period or DPBP is period in which discounted value of future cash inflows is…

Q: Does the signaling theory lead to the same conclusions regarding the optimal capital structure asthe…

A: The concept of signaling theory comes from the asymmetries of knowledge between management and…

Q: For balance sheet purposes, can the fair value of a derivative in a loss position be netted against…

A: Financial accounting standards board (FASB): This is the organization which creates, develops, and…

Q: What are the differences between mutually exclusive, non-mutually exclusive,and capital rationing…

A: DIFFERENCE BETWEEN  MUTUALLY EXCLUSIVE ,  NON MUTUALLY  EXCLUSIVE ,AND CAPITAL RATIONING DECISION…

Q: Why is it more reasonable to assume, as the NPV rule does, that the intermediate cash flows are…

A: Before investing in new assets or projects, profitability is evaluated by using various methods like…

Q: Select the investment accounting approach with the ­correct valuation approach:     Not…

A: Fair value: Fair value is the price at which, both seller and buyer agree to exchange the asset. So,…

Q: True or false? A fully funded CDO will have on its balance sheet the risky assets that are being…

A: A synthetic CDO is one type of collateralized debt obligation that invests in noncash assets to…

Q: What are some steps taken by both the FASB and IASB to move to fair value measurement for financial…

A: International Financial Reporting Standards: IFRS (International Financial Reporting Standards) is a…