There has been steady shift in accounting standards over the past few years, moving away from...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
There has been steady shift in accounting standards over the past few years, moving away from historical cost measures towards fair value. MFRS 13 Fair Value Measurement represents the framework for fair value measurement required throughout other MFRS standards. Despite it prevalence in the accounting standards, fair value is a nuanced concept in practice. (a) Discuss the objectives of MFRS13 Fair Value Measurement standard. (b) Explain three (3) reasons of exit price is used as the primary measure of fair value. (c) The existence of a market is very important in determining fair value. What factors would indicate an active or appropriate market exists? (d) Identify and discuss the hierarchy for fair valuing liabilities. (e) An entity wants to fair value some of its motor vehicle asset, which consist of approximately 20 motor vehicles of various, but common, commuter type cars. How would the entity go about fair valuing those motor vehicles and what factors would it need to consider? There has been steady shift in accounting standards over the past few years, moving away from historical cost measures towards fair value. MFRS 13 Fair Value Measurement represents the framework for fair value measurement required throughout other MFRS standards. Despite it prevalence in the accounting standards, fair value is a nuanced concept in practice. (a) Discuss the objectives of MFRS13 Fair Value Measurement standard. (b) Explain three (3) reasons of exit price is used as the primary measure of fair value. (c) The existence of a market is very important in determining fair value. What factors would indicate an active or appropriate market exists? (d) Identify and discuss the hierarchy for fair valuing liabilities. (e) An entity wants to fair value some of its motor vehicle asset, which consist of approximately 20 motor vehicles of various, but common, commuter type cars. How would the entity go about fair valuing those motor vehicles and what factors would it need to consider?
Expert Answer:
Answer rating: 100% (QA)
Thats correct Fair value measurement has become increasingly important in accounting standards with a shift away from historical cost measures MFRS 13 which stands for Malaysian Financial Reporting St... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
Read the comment letter below written by Micron's CFO to the FASB dated June 30, 2004 and answer the following question. Director of Major Projects Financial Accounting Standards Board 401...
-
What are the problems with the company/individual/concepts mentioned in the case study article? Why are the problems important? In what way does the problem impact the organization? What are...
-
Day and Night formed an accounting partnership in 2014. Capital transactions for Day and Night during 2014 are as follows: Partnership net income for the year ended December 31, 2014; is $68,400...
-
Music Makers Ltd. reported trading investments with an original cost of $115,000 and a fair value of $130,000 at December 31, 2011. It also reported an unrealized gain of $15,000 relating to the...
-
Find the slope-intercept form for the line satisfying the conditions. Perpendicular to y = 6x 10, passing through (15,-7) -
-
Consider the following cash flow profile and assume MARR is 10 percent/year. a. What does Descartes' rule of signs tell us about the IRR(s) of this project? b. What does Norstrom's criterion tell us...
-
An initial solution has been given to the following workcenter layout problem. Given the flows described and a cost of $ 2.00 per unit per foot, compute the total cost for the layout. Each location...
-
A system consists of a large number of identical molecules at equilibrium. Each molecule can be in one of a ladder of energy levels. As shown in the diagram below, the energy levels are uniformly...
-
The following mini-case scenario involves an ethical dilemma associated with project management. How would you respond to the situation, and why? Gold Star LAN project You work for a large consulting...
-
During the annual audit of Ajax Corp., a publicly held company, Jones, CPA, a continuing auditor, determined that illegal political contributions had been made during each of the past seven years,...
-
From the investor's perspective, briefly describe the cash flows associated with a bond. Briefly explain the term yield to maturity.
-
what is the recovery period and deprfciation method of as residential rental propertylocated in a foreign country which was placed in service after ZDecember 31, 2017
-
In this assignment you will acquire skills to employ the writing process to produce a clear message. Choose a scenario where clear communication is crucial. It could be a workplace email, a...
-
what concept is essential in understanding the convergence or divergence of an infinite series? Explain.
-
Imagine if the Earth were twice as large (i.e., a sphere with double the radius) but had the same mass. How would that change your weight? Your weight would not be affected at all, since Earths mass...
-
During the month, services performed for customers on account amounted to $7,500 and collections from customers in payment of their accounts totaled $6,000. At the end of the month, the Accounts...
-
Podlucky served as Le-Nature's chief executive officer (CEO) and relied principally on his family and wide circle of friends and business associates to staff the company's other key positions as it...
-
After spending much of the previous three months working elbow-to-elbow with as many as six colleagues in a cramped and poorly ventilated conference room, Hamilton Wong was looking forward to moving...
-
The Brothers Greenberg For decades, Jack Greenberg oversaw a successful wholesale meat company, a company that he eventually incorporated and named after himself.1 Jack Greenberg, Inc., marketed a...
-
Kids Sports Consulting Pty Ltd is a company set up by sports and recreation management students to gain experience in running their own business. It had the following contribution margin income...
-
V. Zarb, the marketing manager for Maltese Treasures Ltd, is preparing a sales budget for the year ended 30 June 2020. In reviewing the actual sales data for the previous year, the sales and...
-
The following expenses budget has been prepared for Abacus Services for the year ending 30 June 2020. Professional salaries, secretarial wages and training are paid in the quarter in which they are...
Study smarter with the SolutionInn App