Accounting Tools

NOVEMBER 6, 2023

Related Courses Fair Value Accounting What is the Fair Value Option? The fair value option is the alternative for a business to record its financial instruments at their fair values. Once you elect to follow the fair value option for an instrument, the change in reporting is irrevocable.

Deposits 40

Deposits Financial Statements Accounting Accounting 40

Accounting Tools

OCTOBER 28, 2023

The present value of the sum of all lease payments and any lessee-guaranteed residual value matches or exceeds the fair value of the underlying asset. In this context, “substantially” means 90% or more of the fair value of the underlying asset. These measurements are derived as follows: Lease liability.

Accounting 75

Accounting Accounting Collections 75

Accounting Tools

AUGUST 25, 2023

Related Courses Accounting for Derivatives and Hedges What is a Fair Value Hedge? A fair value hedge is a hedge of the exposure to changes in the fair value of an asset or liability. It is used to minimize fluctuations in earnings caused by changes in fair values.

Accounting 40

Accounting Accounting 40

Accounting Tools

NOVEMBER 1, 2023

Related Courses Fair Value Accounting What is an Orderly Transaction? An orderly transaction is needed in order to arrive at the fair value of an asset or liability. Related Articles Active Market Fair Value Accounting Highest and Best Use Principal Market

Accounting 40

Accounting Accounting 40

Accounting Tools

APRIL 9, 2024

A revaluation surplus is an equity account in which is stored any upward changes in the value of capital assets that exceed its prior book value. Related AccountingTools Courses Fixed Asset Accounting How to Audit Fixed Assets International Accounting Related Article The Revaluation Model What is a Revaluation Surplus?

Financial Reporting 40

Financial Reporting Auditing Accounting Accounting 40

Accounting Tools

OCTOBER 23, 2023

Related Courses Fair Value Accounting What are Level 3 Inputs? Level 3 inputs are at the bottom of a hierarchy of information sources that range from Level 1 (best) to Level 3 (worst) when dealing with asset and liability fair values. The Fair Value Hierarchy The three levels are known as the fair value hierarchy.

Accounting 40

Accounting Accounting 40

Accounting Tools

MARCH 7, 2024

Accounting for an Asset Retirement Obligation A business should recognize the fair value of an ARO when it incurs the liability and if it can make a reasonable estimate of the fair value of the ARO. If a fair value is not initially obtainable, recognize the ARO at a later date, when the fair value becomes available.

Financial Statements 40

Financial Statements Accounting Accounting 40

Accounting Tools

DECEMBER 23, 2023

An appraisal is a valuation of the market value of an asset. There are many reasons for appraisals, such as deriving a value for insurance purposes, for the sale of an asset, or to determine the division of property for an inheritance or divorce. Another possibility is to compile the replacement cost of the asset in question.

Accounting 40

Accounting Accounting 40

Accounting Tools

MAY 7, 2024

This is a concern when reviewing the balance sheet , where the values of assets and liabilities may change over time. Some items, such as marketable securities , are altered to match changes in their market values , but other items, such as fixed assets , do not change.

Financial Statements 75

Financial Statements Auditing Accounting Accounting 75

Accounting Tools

SEPTEMBER 1, 2023

Related Courses Fair Value Accounting What is an Appraisal Report? An appraisal report is a written statement by an appraiser concerning the estimated value of a property. This report can be a source document for the derivation of asset fair values.

Accounting 40

Accounting Accounting 40

Accounting Tools

JUNE 17, 2023

Related Courses Fair Value Accounting What is Fair Value? Fair value is the price that two parties are willing to pay for an asset or liability , preferably in an active market. In this situation, the effects of supply and demand will likely impact the value associated with the asset under examination.

Accounting 40

Accounting Accounting 40

Accounting Tools

OCTOBER 3, 2023

Related Courses Fair Value Accounting What are Market Participants? The concept is used in relation to the development of fair market values for assets and liabilities. The quality of fair market value information is considered to be higher when there are many market participants.

Accounting 40

Accounting Accounting 40

Accounting Tools

DECEMBER 28, 2023

Historical Cost vs. Fair Value Historical cost has the disadvantage of not necessarily representing the actual fair value of an asset, which is likely to diverge from its purchase cost over time. Related Articles Actual Cost Current Cost Incurred Cost Legacy Cost Original Cost Past Cost Total Cost

Cost Accounting 40

Cost Accounting Accounting Accounting 40

Accounting Tools

AUGUST 24, 2023

A hedging instrument is a designated financial instrument whose fair value or related cash flows should offset changes in the fair value or cash flows of a designated hedged item. Related Articles Hedge Accounting

Corporate Finance 40

Corporate Finance Accounting Accounting 40

Accounting Tools

SEPTEMBER 1, 2023

This type of investment is carried on an entity's books at fair value. If there is a change in fair value from period to period, the gain or loss is recorded in equity. Related Articles Available-for-Sale Securities

Accounting 40

Accounting Accounting 40

Accounting Tools

OCTOBER 2, 2023

Related Courses Fair Value Accounting What is Exit Price? Related Articles Exit Value Fair Market Value Market Value Maturity Value Value-in-Use Exit price is the price that a seller would receive in exchange for the sale of an asset or would pay to transfer a liability.

Accounting 40

Accounting Accounting 40

Accounting Tools

OCTOBER 24, 2023

This type of security has value to the investor , who can either receive interest payments on the debt or elect to acquire shares that may have increased in value. Because of this added value, the issuing company can achieve a lower interest rate on its debt than would normally be the case.

Accounting 40

Accounting Accounting 40

Accounting Tools

AUGUST 1, 2023

Related Courses Fair Value Accounting What is Exit Value? Exit value is the proceeds if an asset or business were to be sold. Exit value is used in the determination of fair value for assets. Exit value is used in the determination of fair value for assets.

Accounting 40

Accounting Accounting 40

Accounting Tools

NOVEMBER 5, 2023

In liquidation accounting, assets are measured at the estimated amount for which they can be sold – which may or may not be their fair market value. If the liquidation is rushed, this could mean that the estimated selling price is less than fair market value. Do not discount disposal costs to their present value.

Accruals 71

Accruals Accounting Accounting Financial Statements 71

Accounting Tools

JULY 21, 2023

Related Courses Fair Value Accounting What is Value-in-Use? Value-in-use is the net present value of the cash flows generated by an asset as it is currently being used by the owner. This amount may be less than the net present value of cash flows from the highest and best use to which an asset can be put.

Accounting 40

Accounting Accounting 40

Accounting Tools

NOVEMBER 26, 2023

How to Account for a Small Stock Dividend When there is a stock dividend, you should transfer from retained earnings to the capital stock and additional paid-in capital accounts an amount equal to the fair value of the additional shares issued. The fair value of the stock is $5.00, and its par value is $1.00.

Accounting 40

Accounting Accounting 40

Intuit

DECEMBER 18, 2023

For Intuit, this includes an established set of responsible AI principles , including fairness, accountability, transparency, privacy, and security. These values guide how Intuit responsibly operates and scales our AI-driven expert platform. Consider Ethical Implications: Ethical considerations are paramount when using or deploying AI.

Accounting 279

Accounting Accounting 279

Accounting Tools

NOVEMBER 1, 2023

Related Courses Accountants' Guidebook GAAP Guidebook What is Intrinsic Value? Intrinsic value measures the worth of a stock option. The concept is used in the recognition of the value of an issued stock option. Example of Intrinsic Value Luminescence Corporation is a privately-held company.

Accounting 40

Accounting Accounting 40

Accounting Tools

APRIL 25, 2024

What is the Book Value of Equity? Book value is the amount that investors would theoretically receive if all company liabilities were subtracted from all company assets ; this leaves a residual amount available for distribution to investors. The book value of equity concept is rarely used as a measurement within a business.

Computation 40

Computation Financial Statements Accounting Accounting 40

Accounting Tools

MAY 13, 2024

How to Value Inventory Inventory valuation is the cost associated with an entity's inventory at the end of a reporting period. If inventory is being hedged by a fair value hedge, add the effects of the hedge to the cost of the inventory, which frequently eliminates the need for an LCM adjustment.

Tax 75

Tax Financial Reporting Auditing Accounting 75

Accounting Tools

AUGUST 31, 2023

The donor can then take a tax deduction in the amount of the fair value of the stock on the date of donation, but only for shares that have been held for at least one year. The fair market value of the shares of a public company are easily determined; use the average of the high and low stock prices on the donation date.

Tax 40

Tax 40

Accounting Tools

DECEMBER 22, 2023

The recipient of this transfer records the received asset at its fair value on the transfer date. The initiator of the transfer records the asset disposition at its fair value, which may result in the recognition of a gain or loss.

Auditing 40

Auditing Accounting Accounting 40

Accounting Tools

MARCH 3, 2024

Present value. The present value of the sum of all lease payments and any lessee-guaranteed residual value matches or exceeds the fair value of the underlying asset. The present value is based on the interest rate implicit in the lease. Specialization. Termination right.

Accounting 40

Accounting Accounting 40

Accounting Tools

AUGUST 27, 2023

Measure Tangible Assets and Liabilities Measure tangible assets and liabilities at their fair market values as of the acquisition date, which is the date when the acquirer gains control over the acquiree. This fair value analysis is frequently done by a third-party valuation firm.

Accounting 40

Accounting Accounting CPA 40

Accounting Tools

SEPTEMBER 12, 2023

Revaluation is used to adjust the book value of a fixed asset to its current market value. Once a business revalues a fixed asset, it carries the fixed asset at its fair value , less any subsequent accumulated depreciation and accumulated impairment losses. Related Articles Revaluation Surplus The Revaluation Model

Financial Reporting 40

Financial Reporting Accounting Accounting 40

Accounting Tools

SEPTEMBER 25, 2023

Related Articles Fair Market Value Fair Value Fair Value Accounting Conversely, the sale of an asset within a family is unlikely to be an arm's length transaction, since the seller may be offering the item at a much lower price than could be obtained if the buyer had not been a family member.

Tax 40

Tax Accounting Accounting 40

Counto

APRIL 17, 2024

Unionised workers can seek further assistance from their unions, and all others might approach the Tripartite Alliance for Fair and Progressive Employment Practices (Tafep) for guidance. Studies indicate job postings with such options draw considerably more applicants, showcasing the value potential employees place on flexibility.

Corporation Tax 98

Corporation Tax Payroll Bookkeeping Tax 98

Accounting Tools

JUNE 15, 2023

The investment has no easily determinable fair value. Once the investor records the initial transaction , there is no need to adjust it, unless there is evidence that the fair market value of the investment has declined to below the recorded historical cost. the purchase price). ABC does not make any other entries.

Accounting 40

Accounting Accounting 40

Accounting Tools

JULY 16, 2023

When there is a stock dividend, the related accounting is to transfer from retained earnings to the capital stock and additional paid-in capital accounts an amount equal to the fair value of the additional shares issued. This fair value is based on their market value after the dividend is declared.

Accounting 40

Accounting Accounting 40

Accounting Tools

OCTOBER 26, 2023

The principle is widely used to record transactions , partially because it is easiest to use the original purchase price as objective and verifiable evidence of value. A variation on the concept is to allow the recorded cost of an asset to be lower than its original cost, if the market value of the asset is lower than the original cost.

Financial Reporting 40

Financial Reporting Bookkeeping Accounting Accounting 40

Accounting Tools

NOVEMBER 3, 2023

Related Courses Corporate Bankruptcy What is Liquidation Value? Liquidation value is the amount at which a company could sell its assets and settle liabilities on a rush basis. There are two variations on the concept that can result in different liquidation values, which are noted below.

Accounting 40

Accounting Accounting 40

Accounting Tools

AUGUST 27, 2023

Measure Tangible Assets and Liabilities Measure tangible assets and liabilities at their fair market values as of the acquisition date, which is the date when the acquirer gains control over the acquiree. This fair value analysis is frequently done by a third-party valuation firm.

Accounting 40

Accounting Accounting CPA 40