Company Accounting Questions and Answers 2022

Running head: COMPANY ACCOUNTING
Company Accounting
Name of the Student:
Name of the University:
Author’s Note:

1COMPANY ACCOUNTING
Table of Contents
Answer to question 1:......................................................................................................................2
Sub part (a):.................................................................................................................................2
Sub part (b):.................................................................................................................................2
Sub part (c):.................................................................................................................................3
Answer to question 2:......................................................................................................................3
Answer to question 3:......................................................................................................................4
Sub part (a):.................................................................................................................................4
Sub part (b):.................................................................................................................................4
Sub part (c):.................................................................................................................................5
References and bibliography:..........................................................................................................6

2COMPANY ACCOUNTING
Answer to question 1:
Sub part (a):
Each company should able to value their asset and liability as per the fair value in the
market, as IFRS 13 state that it should be recorded in net realizable value so that the investor can
know the original value of the company, while considering it company should also take into
consideration the assumption of market participants (Aasb.gov.au. 2019). Company is able to
take new asset than it should to consider the best quoted price of the asset. It also shows about
different market but it do not conclude upon a single market participants.
Sub part (b):
Fair value is a measurement which uses market as its base and not a measurement
which is entity-specific. Some market data or market transactions which are observable may be
accessible for assets and liabilities. The aim of a fair value measurement is same for both the
situations- to guesstimate the cost at which a transaction are present (Sarker, Dvorkin & Ortega-
Vazquez,2015). Being a measurement that is measurement based, fair value is calculated by
utilizing the norms that the market-based measurement, by utilizing the norms, which market
contestants would use while setting the price of the asset or liability, it also includes norms about
risk. Therefore, the purpose of an entity is to hold an asset or to settle or else achieve a liability
that is not in relevance while measuring the fair value (Beekes etal., 2016).