Question: What accounting policy ties will a private enterprise use to
What accounting policy (ties) will a private enterprise use to account for investments? Why are these different alternatives than those available to those companies that comply with IFRS?
Answer to relevant QuestionsThis investment had been purchased in 20X1 at a cost of $ 23 per share. At the end of 20X1, the fair value was $ 24 per share. At the end of 20X2, the fair value was $ 28 per share. The investment was sold in 20X3 at $ 30 ...Investor Limited owns 35% of Machines Limited and has significant influence. The investment was made five years ago, when Machine’s fair values equaled book values; $ 40,000 of goodwill was inherent in the purchase price. ...On 1 January 20X2, Lucky Company purchased $ 5,000,000 of Fire Corporation 3% bonds, classified as an AC investment. The bonds pay semi- annual interest each 30 June and 31 December. The market interest rate was 4% on the ...Sun Company purchased $ 4,000,000 of Moon Corporation 6.2% bonds, classified as an AC investment. The bonds pay semi- annual interest each 30 June and 31 December. The market interest rate was 6% on the date of purchase. The ...During 20X2, Morran Company purchased shares in two corporations and debt securities of a third. The share investments are classified as FVTOCI and the bond investment is FVTPL. Transactions in 20X2 include: a. Purchased ...
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