Discuss the role of accounting theory in determining the appropriate measurement and valuation methods for assets and liabilities.
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Discuss the role of accounting theory in determining the appropriate measurement and valuation methods for assets and liabilities.
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- Explain the following measurement bases of the elements of financial statements andindicate how assets and liabilities are measured in each case:i. Historical cost ii. Current cost iii. Realisable valueHow can assets and liabilities be classified for a more informative balance sheet?Explain the concept of conservatism in accounting and how it influences the recognition and measurement of assets and liabilities.
- The usefulness of the balance sheet is enhanced by classifying assets and liabilities according to common characteristics. What are the classifications used in the balance sheet and what elements do those categories include?Explain the accounting equation while considering the relationship between asset, liabilities and capital?Materiality is an entity-specific aspect of which of the qualitative characteristics of financial information? Select one: a. Understandibility b. Timeliness C. Relevance d. Verifiability
- Describe the accounting applications of present value techniques.Explain the following measurement bases of the elements of financial statements and indicate how assets and liabilities are measured in each case: 1. Historical cost 2. Current cost 3. Realisable valueExplain what is meant by materiality in relation to financial statements and state two factors affecting the assessment of materiality.
- The usefulness of the balance sheet is enhanced by classifying assets and liabilitiesaccording to common characteristics. What are the classifications used in Under Armour’sbalance sheet and what elements do those categories include?Explain what characteristics should information have to best meet the objective of financial reporting?Examined and describe the communication aspect of accounting in relation to assets valuation and presentation on financial statements