Company Accounting IFRS Question Answer 2022

Running head: Company Accounting
Company Accounting
Name of the Student
Name of the University
Author Note

1
Company Accounting
Table of Contents
Answer to Question No 1...........................................................................................................3
1A)..........................................................................................................................................3
1B)..........................................................................................................................................3
1C)..........................................................................................................................................4
Answer to Question No 2...........................................................................................................4
Answer to Question No 3...........................................................................................................5
3A)..........................................................................................................................................5
3B)..........................................................................................................................................5
3C)..........................................................................................................................................5
Reference and Bibliography.......................................................................................................6

2
Company Accounting
Answer to Question No 1
1A)
IFRS 13 shows the rules and regulation which the company have to follow in regards
of fair valuation of asset and liability of the company, each company have to show the user
information in regard of asset so it should disclose the information in company financial
statement and IFRS show the proper detail of showing disclosure need in company financial
statement. Fair value of asset and liability should be recorded by the company so that it can
know the real value of company business (Aasb.gov.au. 2019). If the company is able to
show its balance sheet value in market value than it will easy for the shareholder to take
decision in regards of investment and other necessary details for the company. As per IFRS it
states that while valuation of asset and liability is done, the company should consider all the
item and other factor which can affect the value of asset and liability of company
(Aasb.gov.au. 2019). Company should also take into consideration the opinion and price of
market participant as this will help company to get more accurate information in regards of
fair valuation of asset and liability.
1B)
Market participant should be considered by the company will calculating the fair
value of asset and liability of the company as this provision is shown in AASB 22. Asset
should have the effect of expected cash flow and discounting rate as this will give proper
valuation to the asset of the company. Company should also take into consideration of risk
which is associated with the valuation of asset and liability of company. The assumption and
rational behaviour of market participant should also be considered by the company so that it
can able to get proper details about the fair market value of asset and liability of business.