Is there a consequence for reported profit or loss if a particular financial instrument, for example, a preference share, is designated as debt rather than equity? Explain the consequence

Q: How is a financial statement under IFRS different from

A: Solution- In IFRS you need to provide Other Comprehensive Income Statement also in addition to…

Q: The use of fair value to account for debt investments allows for more relevance of accounting…

A: Step 1 Fair valuation concept is universally accepted by all of the worldwide regulating accounting…

Q: what is the contrast the basic financial statements

A: Financial statements are written records that convey the business activities and therefore the…

Q: Why is the distinction between paid-in capital andretained earnings important?

A:

Q: the debt to equity is: debt/equity = long term/ total equity is this true or false

A: Debt Equity Ratio - Debt Equity Ratio shows the comparison of debt company owing with the total…

Q: What is the difference between accounting under the “partial” equity and “full equity method?

A: The full equity and partial equity method re two of the three main ways of dealing with the…

Q: is a correct statement below? A. Equity is the residual interest in the liabilities of the entity…

A: Option A is incorrect The correct statement is  Equity is the residual interest in the assets of the…

Q: Provide some examples of items that would be adjusted directly against equity, rather than being…

A: Example of items that would be adjusted directly against equity, rather than being included as part…

Q: The gain or loss on the net monetary position in a hyperinflationary economy shall be included in:…

A: This question is answered according to IAS 29 "Financial Reporting in Hyperinflationary Economies"

Q: Statement Of Changes in Equity

A: Statement of Changes in Equity is a part of financial statements of an entity that shows the flow of…

Q: Which statement is not true?

A: In the above question, there are four statements; we must identify which of the four statements is…

Q: some examples of items that would be adjusted directly against equity, rather than being included as…

A: The items included in other comprehensive incomes are not considered under profit or loss account…

Q: Which of the following would result from watered shares? overstated capital understated assets…

A: solution : Which of the following would result from watered shares? Correct answer is overstated…

Q: Why might conflicts arise between stockholders and debtholders?

A: A stockholder or a shareholder can be an individual or a company who own one or more shares of a…

Q: Which of the following statements is TRUE regarding the equity method?    A. The equity method is…

A: The investor's equity in the associate adjusts in direct connection to the adjustments in the…

Q: Briefly explain the over-investment problem from the perspective of the agency costs between…

A: Firms with both the debt and equity in the capital structure often face agency conflicts between…

Q: adjusted directly against equit

A: Equity refers to the stake of shareholder's in the company. The formula for calculating equity of…

Q: What is the percentage of debt used to finance Gap? ____________ What is the percentage of owner’s…

A: Total liability 2019=Current liability+Long term liability=$2,174+$2,322=$4,496

Q: list advantages and disadvantages of debt and common equity

A: Debts are the borrowed funds and debenture holders are creditors of the firm. Debts are those funds…

Q: what is the meaning of debt-to-asset ratio?

A: Debt is the amount of liability which arises from past or present event for which a business is…

Q: In accounting terms, what is the difference between profit and loss

A: Accounting is based on the principle of double-entry. It may be described as how a company records…

Q: ders and debtholders differ in their claim of the firm’s cash flows? How does such a claim…

A: Introduction : In simple words, stock refers to the equity claim in a company under which the holder…

Q: Provide some instances of things that would be adjusted directly against equity rather than being…

A: This question explained about give examples of items that might be adjusted against equity rather…

Q: Provide an example of items that would be adjusted directly against equity rather than being…

A: Stockholders’ equity: The claims of owners on a company’s resources, after the liabilities are paid…

Q: When is a gain recognized in a debt restructuring?

A: Debt restructuring is a process which the companies are using to avoid the risk of default on…

Q: Provide some examples of items that would be adjusted directly against equity, rather than being…

A: Following are the example of items that are adjusted directly against equity, rather than being…

Q: The difference between the carrying amount of a financial liability extinguished and the…

A: Liability means the amount which is to be paid to an outsider by business.

Q: Under clean-surplus accounting, a statement of common shareholders' equity has no income other than…

A: According to the clean surplus accounting idea or concept, equity-related profits and losses should…

Q: What is the main difference between debt and equity

A: Debt basically refers to the liability that the organization take to run their business activities…

Q: What are debt issue costs and how should they be reported?

A:

Q: What is the calculation for the debt ratio? Explain what the debt ratio evaluates?

A: Financial Ratios: Financial ratios are the metrics used to evaluate the liquidity, capabilities,…

Q: How does the accounting for a dividend received differ between the cost method and the equity…

A: Equity investment: Equity investments are stock instruments which claim ownership in the investee…

Q: What is the limitation of Financial Statement Analysis

A: Financial statement analysis is the process of analyzing and evaluating the corporate entity's…

Q: Provide some examples of items that would be adjusted directly against equity, rather than being…

A: Stockholders’ equity: The claims of owners on a company’s resources, after the liabilities are paid…

Q: Why is an owner's valuation of a borrowing business excluded from stated net worth to arrive at…

A: When we  say 'net worth' of a business it is  Assets - Liabilities of business.…

Q: Why are claims on income discretionary with equityfinancing but nondiscretionary with debt…

A: Liability: In monetary bookkeeping, a liability is characterized as the future penances of financial…

Q: Recognize the difference between equity and debt instruments.

A: solution concept Equity means the  owners of the company. The equity share holders of the company…

Q: On a balance sheet shareholder equity must always equal the difference between assets and…

A: The given statement is true. A balance sheet is like a snapshot of what a company is at a particular…

Q: provide some examples of items that would be adjusted directly against equity, rather than being…

A: Shareholder's equity:   The amount remaining after subtracting company long term and short term…

Q: Provide some example of items which would be adjusted directly against equity rather than being as…

A: Stockholders’ equity: The claims of owners on a company’s resources, after the liabilities are paid…

Q: How would a debit balance in Unrealized Gain (Loss) on Available-for-Sale Investments be reported in…

A: Available-for-sale securities: These are short-term or long-term investments in debt and equity…