Question: In contrast to U.S. GAAP, IFRS permits management to reverse impairment on fixed assets which have increased in value since the time of their impairment.

In contrast to U.S. GAAP, IFRS permits management to reverse impairment on fixed assets which have increased in value since the time of their impairment. Revaluations are typically based on estimates of realizable value made by management or independent valuers. Do you expect that these accounting standards will make earnings and book values more or less useful to investors? Explain why or why not. How can management make these types of disclosures more credible?

Step by Step Solution

★★★★★

3.33 Rating (165 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The usefulness of earnings and book values will depend on any information asymmetry between manageme... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

410-B-A-F-A (1926).docx

120 KBs Word File

Students Have Also Explored These Related Accounting Questions!

LBO Valuation - Normalizing EBITDAThe ultimate valuation of a prospective LBO is usually based on normalized EBITDA so its important to understand potential adjustments to derive normalized...

Do you expect that China, then India, will follow the growth paths of Japan and South Korea? What factors are similar cross the countries, and what is unique about each of these four?

Do you expect that sometime in the future labor force participation rates of women will resume their increase? Discuss.

Do you expect that sometime in the future labor force participation rates for men and women will be equal? Discuss.

Read Accounting Headline 7.9 and, adopting a Positive Accounting Theory perspective, consider the following issues: a)If a new accounting standard impacts on profits, should this impact on the value...

1.Imperial Foods checkbook balance on December 31, Year 1 was $122,400. In addition, Imperial held the following items in its safe on December 31: (1) A check for $600 from Brewster, Inc., received...

(1) The Quality of Financial Information Referencing this week?s readings and lecture, describe the quality issues related to reporting revenue. What is the importance of understanding various...

A report examine theprovisions and contingencies in two different company, one is Rheinmetall AG aapliesGerman local GAAP, another is GentrackGROUP LIMITED appliesInternational Financial Reporting...

Just Question 1~3 with full explanation including organization, facts, issues, applicable literature (GAAP, IFRS), analysis, and conclusion. Thanks! Case 10-2 Ida's Impairment Ida Inc. (Ida) is a...

Hello, I need help with the questions from the paper: Bleak weather for sun-shine AG: A case study of impairment of assets! ISSUES IN ACCOUNTING EDUCATION Vol. 30, No. 2 2015 pp. 113-126 American...

An intense light source radiates uniformly in all directions. At a distance of 5.0 m from the source, the radiation pressure on a perfectly absorbing surface is 9.0 x 10-6 Pa. What is the total...

How do diagnostic control systems differ from interactive control systems?

What are the implications for Jasmine Branch and Ted Jones if the draft plan is implemented? What are the implications for WU s customers if the draft plan is implemented? What are the pros and cons...

Rhone-Metro Industries manufactures equipment that is sold or leased. On December 31, 2011, Rhone-Metro leased equipment to Western Soya Co. for a four-year period ending December 31, 2015, at which...

The control environment is generally considered the most important component of any organizations internal control process. Defend that generalization. Use examples from this case to support your...

What specific audit procedures might have led to the detection of Accuhealths fraudulent cash and inventory schemes?

The SEC did not criticize Accuhealths independent auditors in the various enforcement releases issued concerning the companys fraudulent schemes. Under what general circumstances auditors should not...

Place yourself in William Makadoks position. Would you have responded differently than he did to the circumstances he faced? Explain.

A tester is executing a test to evaluate and it complies with the user requirement for a certain field be populated by using a dropdown box containing a list of values, at that time tester is...

On April 22, 1999, MediaOne Group and AT&T agreed to merge. Under the merger, MediaOne Groups shareowners will receive .95 of a share of AT&T common stock and $30.85 in cash for each share of...

As discussed in the chapter, on April 6, 1998, Citicorp and Travelers Group announced an agreement to merge to become Citigroup Inc., a global financial service provider. Under the merger, each...

Consider the following two earnings forecasting models: E,(EPS) is the expected forecast of earnings per share for year t+1, given informa- tion available at t. Model 1 is usually called a random...

6-21. You are deciding between two mutually exclusive investment opportunities. Both require the same initial investment of $10 million. Investment A will generate $2 million per year (starting at...

Seinfeld Inc. currently has $875,000 in accounts receivable, $675,500 in inventories and $875,000 in accounts payable on its balance sheet. The firm's production manager has determined that cost of...

Ejercicio #5 1)Qu significa si el resultado de una probabilidad es demasiado pequeo, como 0.00003? Explica. (2 puntos)