Corporate Accounting Important Questions and Answers 2022

Running head: Corporate Accounting
Corporate Accounting
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1
Corporate Accounting
Table of Contents
Question No 1............................................................................................................................2
1A...........................................................................................................................................2
1B...........................................................................................................................................2
1C...........................................................................................................................................2
Question No 2............................................................................................................................3
Question No 3............................................................................................................................4
3A...........................................................................................................................................4
3B...........................................................................................................................................4
3C...........................................................................................................................................4
Reference and Bibliography.......................................................................................................5

2
Corporate Accounting
Question 1
1A
Each company should value their liabilities and asset in regards with the provision of
IFRS 13. It should also follow the disclosure requirement company has to follow in the
valuation of asset and liabilities. Fair value of asset and liability is the net value which
company is able to have by selling it asset in the market as well as how much company pay
for the obligation which it is having in business. Company should able to take the best quoted
price in the market as fair market value of company. This provision also states about different
market alternative which is able to the company but it does not show a proper market
participant to business. AASB 13, in paragraph 22 it clearly says company should not take in
consideration the market participants but should have knowledge of the assumption taken by
market participant in regards of liability and asset.
1B
Market participants assumption should able to be consider while taking the
assessment of liability and asset of organization. Company should also able take into
consideration the discounting factor and expected cash flow in computation market value of
company business. Risk factor is to be consider by the company when the company is taking
market participant assumption fair value of business as it is mention in Appendix A of AASB
13. Inherent risk also be considered by the company, it should also know about the rational
behaviour which the company has in market participant of business.
1C
Market price of liability and asset is been considered by business in regards of fair
value of liabilities and asset of busienss as it is stated in AASB 13 and IFRS 13. If company
is able to transfer any similar object than it able to consider the recent price as its fair value