Why are liability accounts included in the capital acquisitionand repayment cycle audited differently from accounts payable?

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: Which of the following statements is TRUE? a. The acquirer shall measure the identifiable assets…

A: Answer:- a True Explanation:- The statement is true the acquirer must value the identifiable assets…

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

A:

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

A:

Q: purpose of recognizing depreciation on the financial statements?  Is it designed to report PPE at…

A: Property, plant, and equipment (PPE) are long-term assets that are crucial to business operations.…

Q: Interest revenue for debt investments at fair value through other comprehensive income

A: IFRS 9 - Financial instruments deals with the calculation of interest income on debt investments.

Q: The concept of capital maintenance chosen by an entity shall determine the accounting model used in…

A: The capital maintenance concept states that a corporation produces a profit only when all operating…

Q: what are the possible violation of financial reporting protocols ?

A: Financial Statements: Financial statements are formal records of the monetary activities and…

Q: The selection of the appropriate concept of capital by an entity should be based on the needs of the…

A:

Q: If a company has asset classes that include short-term and long-term investments, what criteria…

A: Cash Equivalents The short term investments that can be easily converted into cash in the business…

Q: Briefly describe some of the similarities and differences between GAAP and IFRS with respect to the…

A:

Q: PFRS 9 can an entity classify financial assets that meet the amortized cost criteria as at FVTPL?

A: As per PFRS 9, an entity may classify financial assets initially according to the measurement at…

Q: How is materiality (or immateriality) related to the proper presentation of financial statements?…

A:

Q: What are the short-term effect and the long-term effect of improperly capitalizing expenditures on…

A: Financial statements are prepared by the company to present its financial position at a given point…

Q: Which of the following best describes the application ofgenerally accepted accounting principles to…

A: Accounting principles: These are the assumption, concepts, and guidelines necessary to prepare and…

Q: The acquisition of assets by issuing securities would be classified as an operating activity. an…

A: Issuing securities for the acquisition of assets doesn't involve any cash flows.

Q: Explain how the cost of capital may be used as a screening tool when applying the net present value…

A: Net present value: Net present value is a the increment return from an investment after covering the…

Q: investments in debt instruments are financial asset

A: First option is wrong because debt instruments are not equity instruments. Second option is wrong…

Q: Which of the following need not be disclosed in the financial statements or the notes thereto?…

A: A contingent liability is a liability that may arise as a result of the outcome of a future event…

Q: Which of the following is correct about subsequent measurement of financial asset at fair value? a.…

A: Fair value through other comprehensive income-financial assets are classified and measured at fair…

Q: What assertions found in PP&E, investments, and intangibles accounts are of interest to an…

A: Management assertion refers to the claim made by the management assuring about the accuracy of…

Q: The disclosure of a line item for Other current assets in the Statement of financial position would…

A: The answer for the multiple choice question and relevant explanation are presented hereunder : Other…

Q: The capitalization rate used to determine the capitalizable borrowing cost should be disclosed.…

A: It is pertinent to note that as per IAS 23 borrowing costs incurred for acquisition, construction of…

Q: If a company has asset classes that include short-term and long-term investments, what criteria…

A: Step 1 As per US GAAP, the proper classification should be required in the financial statements for…

Q: What factors need to be considered in determining whether a receipt is of an income or of a capital…

A: The essential distinction between Capital Receipt and Income is the "purpose" with which the asset…

Q: Can you explain the importance of the correct determination of an asset’s value and its effect on…

A: Introduction: Financial statements are files that summaries a company's operations and financial…

Q: practice, which one of the following factors plays the most important role in the distribution of…

A: When company goes for liquidation than company distribute the funds available for distribution among…

Q: What is the importance of each assertion in the audit of investments?

A: SOLUTION- IN THE AUDIT FOR INVESTMENTS , THE INHERENT RISK OF INVESTMENTS INVOLVE MORE ON THE…

Q: The classification and therefore subsequent measurement of financial assets depends on.? Select one:…

A: Hi student Since there are multiple questions, we will answer only first question.

Q: Does the deductibility of an expense or loss follow accounting practice?

A: The accounting practice is the practice of recording the day-to-day financial transactions of the…

Q: What are some advantages of matching the maturities of claims against assets with the lives of…

A: Whenever something is going to give benefit in future, it is known as asset. The amount which is…

Q: Which statement is incorrect regarding reclassification of financial assets? a) Reclassifications…

A: As per IFRS a) Reclassifications to FVTPL measurement category result to amounts recognized in…

Q: Depending on the business model for managing financial assets, an entity shall classify financial…

A: A financial  asset can  be measured  at Fair value  through  profit or loss

Q: Under what circumstances under PFRS 9 can an entity classify financial assets that meet the…

A: PFRS 9 includes 3 main components. (1) Requirements  for recognition, Classification of Financial…

Q: Explain the adjustments made in the equity method when the fair value of the net assets underlying…

A: When a company follows equity method when it has significant influence over such company.The…

Q: Which of the following would NOT be classified as a current asset on a classified balance sheet?…

A: Current assets are those assets which are in cash or can be converted into cash into short period of…