IFRS 13 help the company t. Accounting Name of the Student Name of the University Author

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

1
Company Accounting
Table of Contents
Question No 1:...........................................................................................................................2
Sub part (a):............................................................................................................................2
Sub part (b):............................................................................................................................2
Sub part (c):............................................................................................................................2
Question No 2............................................................................................................................3
Question No 3............................................................................................................................3
Sub part (a):............................................................................................................................3
Sub part (b):............................................................................................................................4
Sub part (c):............................................................................................................................4
Reference and Bibliography.......................................................................................................5

2
Company Accounting
Question No 1:
Sub part (a):
IFRS 13 help the company to know different policies and procedure which the
business haas to follow related to financial statement. It also contains the detailed information
as how the company should able to disclose the information in the annual report. It show the
fair value of liability and asset which can help the user to know the real position of the
company financial report. Each business should know about the fair value as how much the
company will get by selling its asset and how much it have to pay in regards of its liability
payment. IFRS suggest that company should take all things into consideration as the market
price and the change in other factor while determine the market value of its asset and liability
(IFRS 13: Appendix A). As per paragraph 22 in AASB 22, as company should able to adopt
market participant assumption in their fair value of asset and liabilities.
Sub part (b):
AASB 22 state that each entity should measure the fair value of its financial report by
keeping into consideration the market participant assumptions. In regards of asset they should
also take consideration of forecasted cash flow and discounting rate so that fair value of asset
can be obtained. The risk aspects should be considered in asset and liabilities. The company
should apply the fair valuation technique while taking into consideration the rational
behaviour in market participants.
Sub part (c):
The provision in IFRS 13 and AASB 13 state the concern should consider the market
price as the fair value of asset and liability. If the business in not able to find the current
proper price than it should take into consideration the recent price as the market value with
any alteration. The organization is not having proper details of the price than it should make a