There are much argument about using cost instead of fair value to record acquired assets. In your opinion why do you think it is advisable to use cost instead of fair value as a basis for recording assets when acquired?

Q: practice, would you expect the depreciation expense for a non-current asset to be overestimated or…

A: Depreciation is charged for non current asset being tangible asset, because of its wearing and tear…

Q: uisitions? Identify t cors and discuss em

A: Introduction : The core source of value destruction in an acquisition is due to entranced managers.

Q: Why are the impairment rules for goodwill different than for other assets? Explain

A: Goodwill: Goodwill is the good reputation developed by a company over years. This is recorded as an…

Q: WHAT IS TECHNICAL OBSOLECENSE OF ASSET

A: The term obsolete refers to the fact that a commodity is no longer in use. Obsolescence refers to…

Q: Gains and losses from asset sales are considered an operating activity. Group of answer choices True…

A: False.Gains and losses from asset sales are not considered as operating activities but are…

Q: The depreciation procedures that apply to the main kinds of depreciable assets in general?

A: Depreciation is an accounting method for allocating the cost of a tangible or physical asset over…

Q: Fixed cost $80,000; Variable cost $2 per unit; Selling price $10 per unit. Required: Turnover for a…

A: Variable costs are costs that varies with the change in the level of output. Fixed costs are costs…

Q: Why allow the fair value option for financial assets and liabilities and not for, say, buildings or…

A:

Q: In your own view, how important is asset allocation? Discuss the various strategies of asset…

A: Since each asset class comes with a different degree of risk, it becomes important to balance the…

Q: Which of the following is not a factor that limits the service life of an asset? a. Operational use…

A: Service life can be limited due to physical causes and functional causes such as deterioration,…

Q: Can the selection of a depreciation method affect a company’s asset replacement policy (i.e., the…

A: 1. Depreciation Expenses - Depreciation Expenses are the expense incurred on the wear and tear of…

Q: What is meant by depreciable base? How is it determined?

A: Depreciable base: The word depreciable base is used to depict the value that is divided by the…

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: Intangible assets are certain nonphysical assets used in operations that confer on their owners'…

A: Non current asset: It implies to an asset having an expected useful life of more than a year and is…

Q: Explain how losses on intangible assets that are impaired should be recorded in income.

A: When the carrying amount of the asset is less than the recoverable Amount it should be provided for…

Q: Why is the recording of depreciation expense necessary?

A: Introduction:- Depreciation is non cash expenses. Which is charged on fixed asset. Which is charged…

Q: what are some pros and cons of holding high level of current assets in relation to sale?

A:

Q: Instead of valuing assets, depreciation is a cost allocation procedure. This statement should be…

A: This question tells about depreciation is a cost allocation procedure:

Q: How can the Gains and Losses on Depreciable Assets be determined?

A: For calculation of gains or losses on depreciable assets, written down value of the assets at the…

Q: Which asset never depreciates in value?

A: Depreciation expense: Depreciation expense is the reduction in a particular asset due to its use or…

Q: Should the engineers be able to assess the reality of depreciating fixed assets?

A: A company should assess the position of its fixed asset and check for its impairment if condition…

Q: The amount for which an asset could be exchanged, a liability settled , or an equity instrument…

A: The amount for which an asset could be exchanged, a liability settled , or an equity instrument…

Q: When does a company record an asset related to a gain contingency? a. When future events will…

A: A contingency, in general, is an uncertain future event or condition that may result in a gain or a…

Q: Explain the accounting issues related to asset impairment.

A: Asset impairment: Asset impairment emerges when there is a sudden drop in the fair value of an asset…

Q: Why might disinflation prove favorable to financial assets?

A: Disinflation is the reduction or lowering of the pace of inflation. In other words in situation of…

Q: Why should the person who keeps the records of an asset not be the person responsible for its…

A:

Q: Land is not an asset we depreciate. Explain what it is not treated as an asset we depreciate?

A:

Q: Discuss the overarching idea of Asset Liability Management and its key objectives. How does the…

A: Asset and liability management practices were first introduced by financial institutions during the…

Q: In what ways might a depreciable asset's estimated service life be influenced?

A: The Answer

Q: why is there a need to re evaluate impairment of assets due to trigger events?

A: The impairment refers to the decrease in the value of assets of the company. This reduction is…

Q: Which of the following is NOT a step in impairment testing? Select one: a. Calculate the asset’s…

A: An asset is said to be impaired if the carrying value of such asset is higher than the higher of…

Q: Given the building layout for Store A, Store B, Store C, and Store D, what portion of the shared…

A: Cost refers to the amount expended by an entity as a consideration for acquisition of goods or…

Q: What is the difference between amortization and depreciation, and how are they applied to intangible…

A: Intangible assets are those that are not physical yet have value to their owner despite having no…

Q: What serious consequences occur in an inaccurate estimate of asset needs?

A: Estimates of assets:   It is approximate value of assets of original value of assets which is used…